Hoa Phat reports record profit

Hoa Phat's stellar performance ensured the company's leading position in the market

According to Hoa Phat’s business results, in 2017, the company earned VND46.8 trillion ($2.06 billion) in accumulated revenue and VND8 trillion ($352.28 million) in after-tax profit, signifying on-year increases of 38 and 21 per cent, respectively.

In the fourth quarter of 2017 alone, Hoa Phat earned VND12.9 trillion ($568.1 million) in revenue and VND2.4 trillion ($105.68 million) in after-tax profit, up 27 per cent in revenue and 23 per cent in after-tax profit on-year.

The revenue from trading steel (including construction steel, steel pipe, and galvanised steel) contributed 90 per cent to the accumulated revenue, with a record steel consumption volume of 3 million tonnes. This was the first time that Hoa Phat sold 2.2 million tonnes of construction steel in a single year. At the same time, this was a 20 per cent increase on-year and exceeded the 2017 target by 10 per cent.

With this consumption volume, Hoa Phat retained its position as the largest steel manufacturer in Vietnam, holding 24 per cent of the construction steel and 26.4 per cent of the steel pipe market.

Besides, the company’s other operations, namely furniture, construction equipment, animal feed, refrigeration, and real estate, also reported an increase.

With the positive business results, Hoa Phat contributed VND5 trillion ($220.2 million) to the state budget, up 40 per cent on-year, VND2 trillion ($88.07 million) of which went to the Hai Duong People’s Committee’s budget, and VND1.2 trillion ($52.8 million) for the Hung Yen People’s Committee’s budget.

In recent years, Hoa Phat has been ranked among the 50 most efficient businesses in Vietnam, and the top 40 contributors to the state budget.

With prestige and strong financial strength, Hoa Phat was entrusted by the government and the Quang Ngai People's Committee to continue implementing the Hoa Phat Steel Complex in Dung Quat Economic Zone with the scale of four million tonnes per year and total investment capital of over VND50 trillion ($2.2 billion).

It is expected that the project will be completed by the end of 2019. Once in operation, the project will generate about $2 billion in revenue, creating jobs for 8,000 people.

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