Tuesday, August 21 2018

VietNamNews

Steelmaker Hòa Phát Group targets $2.4b in revenue in 2018

Update: March, 24/2018 - 07:00
A steel production line of Hòa Phát Group. — Photo thepnhapkhau.vn
Viet Nam News

HÀ NỘI — Steelmaker Hòa Phát Group targets revenue of VNĐ55 trillion (US$2.4 billion) and after-tax profit of VNĐ8 trillion in 2018.

The information was released at the group’s annual shareholder meeting held in Hà Nội on Thursday with the participation of 368 shareholders, who together hold 77 per cent of ordinary shares.

Hòa Phát’s management board chairman Trần Đình Long said the group sees 2018 as a crucial year.

The firm would take drastic measures to ensure the progress of the Hòa Phát Dung Quất steel and iron production complex and make it the priority target for this year, Long said.

He added that the management board had carefully considered the targets before submitting them to the meeting.

“In the first quarter of this year, Hòa Phát’s revenue was estimated to reach VNĐ12 trillion and profit of VNĐ2 trillion,” he said.

The group would implement many big projects this year in their main steel business. In addition, it would be alert for changes in the material market.

In other sectors such as agriculture, construction equipment and interiors, Hòa Phát would continue to maintain its market share.

Trần Tuấn Dương, Hòa Phát’s general director, said there was no steel firm in Việt Nam as competitive as Hòa Phát.

“With a low rate of investment and a competitive price, we can directly compete with big firms around the world,” Dương said.

Speaking on the progress of the Hòa Phát Dung Quất steel and iron production complex, Dương said the group had begun installing the first long steel rolling equipment, building a deep water port and undertaking other constructions.

Hòa Phát employed around 3,000 workers for the project, providing training at its complex in the northern province of Hải Dương.

At the meeting, the shareholders approved dividends of 40 per cent by share for 2017.

Last year, Hòa Phát Group notched a record high business result in its 25 years of operation despite instability in the global and national economies.

Its accumulated revenue in 2017 reached VNĐ46.8 trillion, posting an increase of 38 per cent year-on-year. After-tax profit also hit a record high to reach VNĐ8 trillion, surpassing the set target by 33 per cent and increasing 21 per cent over the previous year.

The group’s steel business played the key role, contributing some 90 per cent of its total revenue and after-tax profit.

Hòa Phát last year exported some 200,000 tonnes of steel products. They included 161,000 tonnes of steel bars and rolled steel to the US, Canada, Australia, Malaysia and Cambodia.

In terms of real estate, Hòa Phát Group handed over its Mandarin Garden 2 housing project in Hà Nội to homebuyers, while expanding industrial zones in the northern province of Hưng Yên. It has started construction on Bắc Phố Nối Urban Area and the 70 Nguyễn Đức Cảnh apartment building.

With its positive business results, the group contributed VNĐ5 trillion ($220 million) to the State budget in 2017, an increase of 40 per cent from 2016. 

In November, Hòa Phát officially introduced its new brand name recognition project to improve its image, prestige and scale. — VNS 

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