Hoa Sen Group announced revenue of 3,077 billion VND and a post-tax profit of 70 billion VND in June. Cumulatively, from the beginning of the fiscal year (starting 10/2024) to date, revenue has reached nearly 28,200 billion VND with a post-tax profit of 647 billion VND.

While both production output and revenue have reached approximately 74% of the full-year targets, profits have already surpassed the conservative 400 billion VND target by 50%. Compared to the more optimistic 500 billion VND target, Hoa Sen has exceeded it by 29% with 3 months remaining in the fiscal year.

The company's management acknowledges the impact of US tariffs on the sentiment of partners, customers, shareholders, and investors. However, they assert that these policies haven't affected production and business operations. This is because the company ceased exporting coated steel to the US in 9/2024 (before the start of the 2024-2025 fiscal year) due to the ongoing anti-dumping investigation.

Recently, Hoa Sen has increased its focus on the domestic market. According to a company representative, in addition to core products like steel sheets, steel pipes, and plastic pipes, they are expanding their nationwide chain of construction material and interior supermarkets.

The positive 9-month performance has brought Hoa Sen's book value per share to 18,660 VND, while the HSG share price on the stock exchange stands at 18,100 VND.

In their mid-year strategic report, experts at SSI Securities believe the domestic market is increasingly vital for steel companies amid rising protectionism. Recovery in the real estate sector and increased public investment are driving positive growth in domestic consumption. However, SSI expresses concern about intensifying competition in the domestic coated steel segment due to increasing export barriers and capacity expansion plans by major players.

SSI projects Hoa Sen's revenue and profit for this fiscal year to reach 39,381 billion VND and 701 billion VND, respectively, representing increases of approximately 1% and 37% year-on-year. This forecast significantly exceeds Hoa Sen's targets set at the beginning of the year.

Under the most optimistic scenario, Hoa Sen projected revenue of 38,000 billion VND and a post-tax profit of 500 billion VND, a 3% decrease. In a less optimistic scenario, they anticipated an 11% revenue decline to 35,000 billion VND and a 22% drop in post-tax profit to 400 billion VND.

Phuong Dong