Chairman of Hòa Phát Group Trần Đình Long spoke at the company's 2026 annual general meeting in Hà Nội on Tuesday. — VNS Photo Vũ Hoa

HÀ NỘI — Hòa Phát reported a record-breaking performance in the first quarter of 2026, with strong gains from its core steel business and a significant one-off contribution from a project divestment, Chairman Trần Đình Long said at the company’s annual general meeting on Tuesday.

The group recorded revenue of approximately VNĐ53.3 trillion (US$2 billion), up around 40 per cent year-on-year, while net profit exceeded VNĐ9 trillion — the highest quarterly profit in the firm's history, equivalent to about 41 per cent of its full-year target.

Long said the sharp increase in profit was driven by two main factors. Around VNĐ5 trillion came from core operations, primarily steel production, while nearly VNĐ3.8 trillion was generated from the transfer of a stake in an urban development project in Phố Nối in the northern province of Hưng Yên.

He noted that the divestment was part of a strategy to optimise capital allocation by partnering with more experienced developers in the real estate segment.

“The transfer helped improve overall efficiency and allowed us to focus more on our core strengths,” Long told shareholders.

Despite the one-off nature of part of the earnings, the chairman emphasised that the underlying steel business remained robust, supported by rising output and improving demand.

Strong performance

In the first three months of the year, Hòa Phát produced approximately 3.3 million tonnes of crude steel, up 25 per cent compared to the same period last year. Total sales volume reached around three million tonnes, marking a 26 per cent increase year-on-year.

Sales of key products showed solid growth. Construction steel and high-quality steel reached about 1.4 million tonnes, while hot-rolled coil (HRC) sales rose sharply to more than 1.4 million tonnes, up nearly 50 per cent from a year earlier.

Domestic consumption accounted for roughly 80 per cent of HRC sales, reflecting strong local demand. The company also continued to expand exports, with products reaching more than 45 countries and territories.

In downstream segments, Hòa Phát supplied 241,000 tonnes of steel pipes and 106,000 tonnes of coated steel in the quarter, up 30 per cent and 19 per cent respectively. Prestressed steel and wire products also recorded strong growth.

The group maintained its leading position in Việt Nam’s construction steel market, with an estimated market share of around 36 per cent.

Ambitious full-year targets

For 2026, Hòa Phát has set a revenue target of VNĐ210 trillion and net profit of VNĐ22 trillion, representing increases of more than 30 and 40 per cent respectively compared to 2025.

After the first quarter, the company has completed about 25 per cent of its revenue target and 41 per cent of its profit goal, putting it on track for its full-year plan.

Management expects continued momentum from public investment and infrastructure development, which are key drivers of steel demand.

Long said that total public investment could soon reach VNĐ3.8 quadrillion, creating significant opportunities for domestic steel producers.

“Producing materials for public infrastructure projects is a very positive direction. At the same time, private sector developments are also accelerating, which is helping improve sales across distribution channels,” he said.

The group aims to maintain an average annual growth rate of around 15 per cent in the 2026–2031 period.

To support this goal, Hòa Phát is continuing to invest heavily in high-quality and specialised steel products, including rail steel, automotive steel, prestressed steel and other industrial materials.

One of its key projects is a rail and special steel plant at the Dung Quất complex, designed with a capacity of 700,000 tonnes per year. The project is progressing on schedule and is expected to begin producing rail steel by the first quarter of 2027.

By the end of 2026, the group aims to reach a total crude steel capacity of around 16 million tonnes per year, positioning itself among the top steel producers in Southeast Asia and within the global top 30.

Aside from steel, the company is also expanding into related sectors. In agriculture, it plans to scale up livestock production and feed capacity, targeting 900,000 commercial pigs annually by 2030. In manufacturing, it is investing in home appliance production and supporting industries to enhance vertical integration.

Despite the positive outlook, the chairman acknowledged ongoing challenges, particularly competition from low-cost steel made in China, the world’s largest steel producer. Chinese steel accounts for more than half of global output.

“Chinese producers are very aggressive in exports, and this is an issue not only for Việt Nam, but for many countries,” Long said.

He added that Hòa Phát is considering recommending trade defence measures, such as tariffs or other barriers, to protect domestic manufacturers.

“Without appropriate safeguards, the imbalance between domestic supply and imported steel could put downward pressure on prices,” he warned.

The company also said it is closely monitoring global developments, including geopolitical tensions and changes in trade policies, particularly from major markets such as the US.

To mitigate risks, Hòa Phát will continue prioritising the domestic market while maintaining exports at below 20 per cent of total sales to ensure diversification.

At the meeting, shareholders were also presented with a dividend plan for 2025, proposing a total payout ratio of 15 per cent, including 5 per cent in cash and 10 per cent in shares.

If approved, the company will issue more than 767 million new shares, increasing its charter capital to approximately VNĐ84.4 trillion. Cash dividend payments are estimated at around VNĐ3.8 trillion, with the timing to be decided by the board.

The proposed payout reflects a more balanced approach after two consecutive years of stock-only dividends, as the company seeks to maintain financial flexibility amid global uncertainties. — VNS