Hoa Phat construction steel output reaches 1.26mln tons in five months, up 9%

Sale was reported almost doubled over the same period with more than 292,000 tons in the Southern region.

The export of steel products in the 5-month period reached 160,000 tons, an increase of more than 50% over the same period of last year. Japan, Australia, Canada, Thailand, Cambodia, Malaysia were its main markets.

In May, the Vietnamese steelmaker (HoSE: HPG) sold 258,500 tons of construction steel of all kinds, up 14.3% over the same period last year. The Southern region recorded a sudden growth in sales with 80,650 tons, almost triple from May 2019.

From the beginning of the year, export billet has reached 596,000 tons, a sharp increase over the same period. In particular, China imported 316,000 tons, accounting for 53%. The rest was imported by Taiwan, Indonesia, Malaysia, Thailand, Sri Lanka, Philippines.

China’s Hangzhou CIEC Group has signed a contract to buy 120,000 tons of steel billets from the company with a value of over VND1,000 billion ($43 million). This is the first time this partner has ordered such a large volume for an order.

Last year, Hoe Phat Group exported 195,000 tons of billets. The export volume has increased sharply this year. During the first four months of 2020, Hoa Phat has exported nearly 500,000 tons of billets to China and ASEAN countries.

Photo: Hoa Phat Group

The amount of steel billets exported to China in 2019 accounts for nearly 100% (190,000 tons) of Hoa Phat’s total exporting volume and that percentage of the first 4 months in 2020 is 43% equivalent to more than 200,000 tons.

Hangzhou CIEC Group Co., Ltd. is a large state-owned steel enterprise in China. In 2019, this partner bought over 100,000 tons of Hoa Phat billets and nearly 60,000 tons in the first 4 months of 2020.

Hoa Phat targets 2020 revenue ranging from VND85,000 ($3.6 billion) to VND95,000 billion ($4 billion) and after-tax profit of about VND9,000 ($385 million) to VND10,000 billion ($428 million). Revenue is expected to increase by 30% this year.

In 2020, Hoa Phat plans to 3,6 million tons of steel, 800,000 tons of billet. The production of corrugated iron companies in 2020 will be 120,000 tons. Steel pipe products set a similar plan to the output of 2019.

In agriculture, the group targets VND10,000 billion ($428 million) in revenue and VND1,200 billion ($51.5 million) profit after tax for 2020, the second-largest sector after steel.

After 5 years of carefully and steadily investing in agriculture, all farms are developing well, the level of production management is strongly improved, the company said.

Hoa Phat's Australian beef is holding the number 1 market share after nearly 5 years of investment with more than 50%, poultry eggs are also in the Top list with more than 400,000 eggs/ day.

This year, the group plans to supply 150,000 Australian cows and 200,000 commercial pigs to the market and reach an output of 700,000 eggs per day by the end of 2020.