Hoa Sen (HSG) profits increase five-fold
Hoa Sen (HSG) profits increase five-fold
Steel giant Hoa Sen Group saw net profits quintuple in May from a year earlier to over VND600 billion ($26.1 million).
One of Hoa Sen’s steel plants. Photo courtesy of Hoa Sen Group.
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Revenues rose 85 percent to VND4.6 trillion.
It attributed the results to rising steel prices, efficient distribution, low inventory, and low logistic costs. It has 10 plants located near ports, which enable it to export with low overheads.
For the first eight months of fiscal year 2020-21, which started on October 1, it reported revenues of VND29.1 trillion and post-tax profits of VND2.8 trillion, equivalent to 88 percent and 187 percent of its full-year targets. Its steel sales during the period were 1.6 million tons.
It targets revenues of VND33 trillion and post-tax profits of VND1.5 trillion for the full year, up 20 and 30 percent.
Hoa Sen is the leading steel sheet manufacturer with its market share in the first five months of 2021 being 37.2 percent, according to the Vietnam Steel Association. Its steel pipe market share has grown by 3.5 percentage points since last year to 20.3 percent.
It plans to expand its supermarket chain, Hoa Sen Home, which sells building materials and furniture, from the current 28 outlets to 40 by next month.
Its chairman, Le Phuoc Vu, expected to have 1,200 outlets within the next three-five years, when it targets $3 billion in revenues and VND3 trillion ($130 million) in profits.
