Steel producer posts profit growth despite virus crisis – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

A man works in the steel pipe factory of Hòa Phát Group JSC. The group reported first-quarter after-tax profit of 2.3 trillion yen, up 27% from a year ago. – VNA / VNS Photo Ngọc Hà

HÀ NỘI – Listed steel companies reported positive business results in the first quarter of this year despite the impacts of the COVID-19 pandemic.

Giant steelmaker Hòa Phát Group (HPG) posted revenue of VN19.5 trillion ($ 835.9 million) in the quarter, up 28% year-on-year. other.

The company reported first-quarter after-tax profit of 2.3 trillion yen, up 27% from a year ago.

In addition to steel production, Hòa Phát also operates in other areas such as furniture, refrigeration, real estate and agriculture.

On the stock market, Hòa Phát (HPG) shares rose sharply after falling to a two-year low of 6,200 VN per share at the end of March this year. Currently, HPG is trading at around 23,600 VN per share, roughly the price recorded at the start of this year.

Hòa Phát’s structural steel market share increased to 31.9% in the first quarter with production of nearly 733,000 tonnes after excluding steel billets. On the estimate, the quantity of finished steel products exported reached 135,000 tons, up 74.8% from the same period last year.

The supply of steel billets reached about 350,000 tons, mainly for export. The main export markets for steel billets are China and the countries of Southeast Asia. The company also supplied the market with nearly 145,000 tonnes of steel pipes.

In March, Hòa Phát supplied a total of 486,000 tonnes of finished steel products and steel billets to domestic and foreign markets.

Another notable steel producer, Hoa Sen Group (HSG), also recorded profit growth during the review period.

Hoa Sen Group’s fiscal year differs from others, starting July 1 and ending June 30 of the following year. Therefore, the first quarter of this year is considered to be the second quarter of the 2019-2020 financial year of the Hoa Sen group.

In the quarter, Hoa Sen’s revenue reached 5.8 trillion yen, down 16.3% year-on-year. Financial expenses fell 44% to VN 223 billion, selling expenses fell 48% to nearly VN 504 billion, and business management fees fell from VN 104 billion to VN 142 billion .

Profit after tax reported in the quarter was VN 201 billion, almost four times higher than profit for the same period last year.

In the first six months of the 2019-2020 financial year, the group reached 382 billion VN in profit after tax, 3.2 times higher than the same period last year and reached more than 95% of the profit target set for the year as a whole.

According to SSI Securities Co, these results were attributed to improved gross profit margin. Inventories were kept at a safer level which allowed the company to focus on profits rather than sales as in previous years.

These are the results obtained after a year of restructuring the distribution system, said SSI.

Other steel companies that have seen profit growth in the first three months of this year include Vietnam Germany Steel Pipe JSC.

The company posted a profit of VN 10.6 billion, up 3.8% year-on-year. But this profit was less than a third of that recorded in the previous quarter.

Notably, Nam Kim Steel JSC (NKG) suffered a loss of over 100 billion VN in the first quarter of last year, but made an after-tax profit of 41.5 billion VN during the period of this year. year.

First-quarter revenues reached VN245 trillion, down 16.7% year-on-year, with export revenues amounting to VN1.13 trillion, accounting for about 46% of total revenues.

Regarding business activities, Nam Kim Steel has continuously strengthened its cooperation with SMC, an industrial partner. The continued increase in SMC’s attendance rate in Nam Kim as well as the use of SMC staff in Nam Kim show the close cooperation between these two units.

Recently, the two funds, Vietnam Enterprise Investments Limited and Amersham Industries Limited, sold a total of more than nine million shares of Nam Kim (NKG), reducing their holdings to less than nine million shares and are no longer the main group shareholders.

Nam Kim expects to reach 12 trillion VN in turnover this year, down slightly from the turnover achieved in 2019.

It also aims to collect 200 billion VN in after-tax profit, a large increase from the profit achieved in 2019.

Consumption is expected to reach 700,000 tonnes, up 7.4% from the 670,000 tonnes achieved in 2019.

Thống Nhất Flat Steel Joint Stock Company (TNS) also recorded an after-tax profit of VN 1.6 billion in the first quarter of this year, while suffering a loss of VN 7.6 billion in the same period l ‘last year. – VNS

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