Steel producers post outstanding results in Q1
The surge in prices of steel since the beginning of 2021 helped many steel producers record good performance in the first quarter.
Rebar futures contracts, trading on the Shanghai Futures Exchange, increased sharply due to supply chain disruptions caused by the COVID-19 pandemic.
The most traded May rebar contract climbed 17.4% this year and traded at 5,101 yuan per tonne. The rebar price rose 51% compared to April 2020.
In its first quarter finance result, Hoa Sen Group (HSG) posted an increase of nearly 382% year-on-year in net revenue to VND9.1 trillion, leading to a rise of 215.8% in profit after tax to VND572 billion.
HSG said that the gain was mainly driven by increases in net revenue and falls in financial expenses, dropping nearly 30% in the first quarter.
Ho Chí Minh City Metal Corporation (HMC) also witnessed strong growth in business results during this period with its revenue rising 40.4% over the same period of 2020 to over VND1.1 trillion.
The company's profit after tax gained over 10 times compared to last year to VND64.7 billion, marking the highest quarterly profit since it was founded.
In the financial report, HMC said that the main reasons for the company's outstanding performance were gains in sales and higher steel price.
The company will hold its annual general meeting on April 26. In a report prepared for the meeting, HMC set this year's target of VND3.45 trillion in revenue, down 5% year-on-year, with profit after tax increasing 16% to VND44 billion.
Another steel producer posting good results in the first quarter was Thu Duc Steel JSC (TDS).
The quarterly financial report showed that the company's net revenue rose 22.7% year-on-year to VND601.6 billion. Its profit after tax also posted a gain of 45.5% to over VND12.8 billion.
According to TDS, its steel consumption increased to over 1,760 tonnes in the last quarter while the steel price continued to rally.
The sharply decline in financial expenses also supported TDS' business results. The fees slid nearly 76% year-on-year in the first quarter.
In 2021, TDS is expected to reach VND20 billion in profit before tax.
On the Ho Chí Minh Stock Exchange (HoSE), HSG and HMC closed higher on April 19, up 5.86% and 6.91%, respectively.
TDS, which trades on UPCOM, also opened the new week on a positive note. The TDS shares increased 14.62% to VND24,300.