According to Hoa Phat Group, its steel sales increased 7% year on year to 1.7 million tonnes in the first 10 months of 2018. The quantity earned the producer approximately VND42 trillion (US$1.8 billion) in revenue and more than VND6.8 trillion (US$292.7 million) in post-tax profit, up 24% and 22% from the same period last year, respectively.
In the third quarter alone, the company generated nearly VND14.4 trillion (US$617.2 million) in turnover and more thanVND2.4 trillion (US$102.9 million) in post-tax profit, both up 13% year on year.
The firm expects to keep the momentum going for sales to hit 4 million tonnes in 2019 and 5 million tonnes in 2020. This year, it aims to sell 2.3 million tonnes of steel.
Hoa Phat is currently constructing the US$3-billion Hoa Phat Dung Quat steel complex in the central province of Quang Ngai. The project is set to start operation on a trial basis in late 2019.
Once fully operational, it is expected to help the steelmaker gain at least 30% of the domestic market share, up from its current share of 22.2%.
The company has distributed thousands of tonnes of high-quality wire-drawing steel made from steel sheets by another Hoa Phat steel complex in the northern province of Hai Duong. It is the only steelmaker in Vietnam qualified to supply wire rod steel to Canada, the US and the Republic of Korea.
In 2017, Hoa Phat Group’s revenue reached VND46.8 trillion (US$2.05 billion), up 38 percent from 2016, and hit a record post-tax profit of VND8 trillion (US$351 million), surpassing its target by 33%, up 21% year on year.
The group’s steel business was the biggest contributor to these results, making up 90% of total revenue and post-tax profit.
Last year, Hoa Phat exported some 200,000 tonnes of steel products.