Steel producer Hòa Phát targets US$3 billion revenue

Update: April, 01/2019 - 14:00
Hòa Phát’s annual general meeting approved the revenue target of VNĐ70 trillion in 2019. — VNS Photo
Viet Nam News

HÀ NỘI — Hòa Phát Group targets after-tax profits of VNĐ6.7 trillion on revenues of VNĐ70 trillion (US$3 billion) this year.

The figures were announced after they were approved at the steel giant’s annual general meeting in Hà Nội last week.

Last year consolidated revenues were VNĐ56.5 trillion and after-tax profits were VNĐ8.6 trillion, up 21 per cent and 7 per cent.

The company’s general director, Trần Tuấn Dương, said the profit target is 22 per cent lower than last year’s because the China-US trade war could have a considerable effect on the global and Vietnamese economies.

Besides, trade protection is on the rise in many places, competition is increasing and raw material prices and interest rates are rising, he said.

Steel is the group’s main business accounting for 83 per cent and 89 per cent of revenues and profits last year. Last year it produced a record 3.1 million tonnes of various kinds of steel and led the steel sector with a market share of 24 per cent.

It exported around 240,000 tonnes to 14 countries, up 51 per cent from 2017.

Its operations in other sectors like real estate and agriculture expanded, with revenues from housing and urban projects doubling. Hòa Phát hopes to sell the remaining apartments at its Mandarin Garden 2 and 70 Nguyễn Đức Cảnh apartments this year.

After-tax profits from agriculture quadrupled. The company is the leader in the production of Australian beef with a 42 per cent market share.

Dương said: “Our revenue in 2019 is expected to be higher than that of 2018 since the first phase of the Hòa Phát Dung Quất iron and steel complex will become operational.

“Hòa Phát targets increasing its market share in the steel sector as soon as the project becomes operational. We could have higher profits thanks to a higher market share.”

The company’s chairman, Trần Đình Long, said costs were rising.

“The price of iron ore increased from $60 to $85-90 per tonne, electricity tariffs and other costs were also higher though steel selling prices are unchanged.”

“HPG would still be a well-performing stock. I plan to buy more HPG shares in 2019.”

The company has received shareholders’ approval to pay dividends of 30 per cent rate in shares for 2019. — VNS