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HPG posts Q1 profit of $85.1mn

Released at: 16:31, 18/04/2017

HPG posts Q1 profit of $85.1mn

Photo: hoaphat.com.vn

Hoa Phat Group now holds a market share of 24.2% in steel industry.

by Hai Van

The Hoa Phat Group Joint Stock Company (HPG) recorded profit of VND1.935 trillion ($85.1 million) in the first quarter of the year, in excess of the figure forecast by Chairman Tran Dinh Long at its annual general meeting (AGM) for 2017.

It produced more than 505,000 tons of construction steel in the quarter, up 27.9 per cent year-on-year, while its share in the industry as a whole increased to 24.2 per cent. It also exported more than 52,000 tons of products to the US, Canada, Australia and ASEAN countries.

In March alone, it exported about 19,000 tons out of total sales of 183,000 tons, an increase in sales of 102 per cent compared to March 2016 but down from the record 242,000 tons posted in February. The Group’s share of the steel construction market in the first quarter has increased 2 per cent since the end of 2016.

The increases in production and in market share were due to a number of factors, including health of the real estate market, according to leaders of the Hoa Phat Steel One Member Limited Company. The main driver of growth in the first quarter, however, was the high purchasing power in the domestic market.

Long steel consumption in March reached 794,649 tons, according to the Vietnam Steel Association (VSA), down 21 per cent compared to March 2016. Sales in the first quarter stood at more than 2 million tons, up just 3.34 per cent year-on-year.

Hoa Phat had a remarkable 2016, with net profit of VND6.606 trillion ($290.5 million); double its target and the highest in its history.

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