The annual general meeting of shareholders of Hoa Sen Group for the 2025–2026 financial year. —Photo courtesy of the firm

HCM CITY — Steel producer Hoa Sen Group has set a net profit target of up to VNĐ600 billion (US$23 million) for the 2026 fiscal year, focusing on strengthening its operational foundation, improving efficiency and prioritising the domestic market.

The plan was presented at the company’s annual general meeting of shareholders held on Saturday. At the meeting, the board of directors and executive management reviewed business results for the previous financial year and outlined strategic directions for the months to come.

Despite volatility in global and domestic steel markets in 2025, marked by rising competition and weakening demand, the company maintained stable operations.

In FY2025, consolidated sales volume reached 1.85 million tonnes, achieving 95 per cent of the annual target. Consolidated revenue totalled VNĐ36.5 trillion, equal to 96 per cent of the plan.

Meanwhile, consolidated after-tax profit reached VNĐ735 billion, exceeding the company’s high-case target by 47 per cent.

The group expects the global economy to remain affected by geopolitical tensions and intensifying competition among major economies, which could reshape global trade patterns. Domestically, competition in the steel sector is also expected to remain high.

Against this backdrop, Hoa Sen Group views the upcoming fiscal year as an opportunity to consolidate its operational base, enhance efficiency and strengthen risk management, while focusing more on the domestic market and optimising its distribution network.

To maintain flexibility amid uncertain market conditions, the group has proposed two business scenarios for FY2026.

At the meeting, shareholders also considered proposals related to restructuring and transitioning to a more specialised management model across business segments.

In the building materials and interior distribution segment, Hoa Sen Home JSC was established on January 5 with charter capital of VNĐ1 trillion, 99 per cent owned by Hoa Sen Group. The company will gradually take over the group’s domestic distribution network and manage the nationwide Hoa Sen Home building materials and interior supermarket system.

The group also proposed increasing Hoa Sen Home’s charter capital to VNĐ3 trillion through the issuance of 200 million shares to existing shareholders.

In addition, Hoa Sen Group plans to diversify funding for its plastics segment through the issuance of convertible bonds.

Earlier this year, the group signed a cooperation agreement with the HCM City Labour Federation to develop at least 20,000 social housing units for workers in HCM City between 2026 and 2030.

For FY2025, the company proposed paying a stock dividend of 30 per cent, funded from accumulated undistributed after-tax profits. — VNS