Steel industry 'at best goes sideways', Hoa Sen Steel still makes a profit of 371 billion VND after 6 months

Tôn Hoa Sen - Ảnh 1. — Steel enterprises accelerate investment, pouring thousands of billions into new projects - Photo: HSG

On April 23, Hoa Sen Group (HSG) of Mr. Le Phuoc Vu announced that it had just announced its consolidated financial report for the second quarter of the 2024-2025 fiscal year.

Selling corrugated iron and steel earns 2 billion VND profit per day

Accumulated in the first 6 months of the fiscal year, Hoa Sen Group's after-tax profit reached 371 billion VND, equivalent to 74% of the plan. Thus, on average, the group earned more than 2 billion VND in profit per day, despite the context that the steel market is under pressure from many sides.

Consolidated sales volume in the first 6 months reached 946,648 tons, completing nearly 49% of the yearly plan. Net revenue reached VND 18,674 billion, equivalent to 53% of the plan.

Notably, gross profit margin in the second quarter increased to 12.7%, compared to 11.8% in the first quarter. This is a sign that the company has optimized its production and supply chain activities, especially in the context of strong fluctuations in raw material prices and operating costs.

HSG representative said these results reflect the effectiveness of a prudent and flexible strategy in financial management, responding to market fluctuations and risks.

However, in the positive picture of profits, HSG's export activities face many challenges.

Since September 2024, the US Department of Commerce (DOC) initiated an anti-dumping investigation on some steel products from Vietnam, causing Hoa Sen's export activities to the US market to temporarily suspend until now.

However, this enterprise diversifies its products to export to more than 90 countries and territories.

Speaking at the recent annual shareholders' meeting, Mr. Le Phuoc Vu - Chairman of the Board of Directors of Hoa Sen Group, frankly stated that the steel industry is in an extremely difficult period.

“I’ll make it clear: the steel industry is only going sideways at best, the general trend is to go down,” Mr. Le Phuoc Vu added. “The total capacity of domestic factories is currently three times higher than domestic demand, while exports are difficult, so the industry is doing best if it goes sideways.”

“It is best for us to return to the domestic market and focus on developing the Hoa Sen Home system,” said Mr. Le Phuoc Vu at the congress.

According to Mr. Vu, this is a favorable time to increase the number of stores and expand the area because in the next two or three years, traditional stores may be "eliminated". According to Mr. Vu, the Hoa Sen Home construction materials and interior supermarket system will replace traditional stores.

Steel enterprises accelerate investment, pouring thousands of billions into new projects

It is noted that many large steel enterprises simultaneously announced large-scale investment plans despite facing challenges in the export market.

Nam Kim Steel has just approved the investment policy for a steel pipe factory in Chu Lai ( Quang Nam ) with a total capital of 150 billion VND, capacity of 150,000 tons/year. The project is invested by Nam Kim Chu Lai subsidiary, located in Tam Hiep port logistics industrial park, convenient for distribution to the Central and Northern regions.

Meanwhile, the board of directors of Ton Dong A Company has just approved contributing an additional VND95 billion to its subsidiary Dong A - Phu My.

It is expected that in the second quarter of 2025, this company will start construction of a factory with a total investment of 7,000 billion VND.

Mr. Tran Dinh Long - Chairman of Hoa Phat Group, said that he will build a railway rail factory in Dung Quat 2, with a total investment of 14,000 billion VND. This is the first high-quality steel production project serving the domestic railway industry.

TRUST

Source: https://tuoitre.vn/nganh-ton-thep-gioi-lam-la-di-ngang-ton-hoa-sen-van-lai-371-ti-dong-sau-6-thang-20250423075115088.htm