Steelmaker Hoa Phat establishes real estate company

The steelmaker’s real estate arm Hoa Phat Real Estate Development JSC will manage real estate investment, construction and development activities of the group.

Hoa Phat contributes 99.9 percent of the company’s charter capital.

Beside steel and real estate, Hoa Phat operates in several different fields, including agriculture, refrigeration, furniture.

In 2001, Hoa Phat entered the real estate segment with its Hoa Phat Construction and Urban Development JSC. Its subsidiary mainly invests and manages industrial zones and a number of housing projects.

In third quarter earning report, Hoa Phat said it collected VND208 billion in net revenue and profit after tax at VND63 billion, contributing nearly 1.7 percent of the group’s profit.

Hoa Phat posted record steel pipe sale of 95,000 tonnes in November, up 31.2 percent from the same period last year. The company also supplied 16,900 tonnes of galvanized coil to the market, representing 135 per cent year-on-year hike.

All of its markets in three regions recorded high growth over the corresponding period last year. The sale in the Northern region was increased by 34.2 percent, while that in the South was 33.7 percent.

Despite facing continuous flood and storms, the Central region still achieved an increase of 17.8 percent.

The year-end months are the peak period for building and completing projects. The steel consumption therefore is always at a high level. In addition, the Government’s policies to promote public investment has also contributed to the increase, the company explained.

Another important reason was that the material prices in the world market have surged in recent months. It is the reason that distributors, agents and contractors have bought more products to reserve for their production and business.

Hoa Phat Dung Quat Steel Integrated Complex has become a major supplier of hot rolled coil steel and raw materials for the company’s production of galvanized coil and steel pipes nationwide.

With the initiative of internal material sources within the group, Hoa Phat Steel Pipe Company Ltd is entering a new stage of development, promising outstanding growth in both output, revenue and profit.

► Hoa Phat’s Q3 after-tax profit doubles to $163mln

► Hoa Phat’s September steel sales hit new record of 522,000 tonnes