Hoa Sen Group (HSG) posts increase in profit
Hoa Sen Group (HSG) posts increase in profit
Hoa Sen Group posted revenue of VND4 .7 trillion (US$207.6 million) and after-tax profit of VND320 billion in August, increasing 66 per cent and 47 per cent respectively over the same period last year.
The group on Monday announced its high growth despite the COVID-19 pandemic thanks to its increase in selling prices.
Its total steel consumption in August reached 167,810 tonnes, representing a 6 per cent year-on-year decrease. Of which, its steel exports accounted for 73 per cent of the total to reach 123,080 tonnes.
It said that steel exports have still been the driving force for revenue growth while the domestic market has been heavily affected by the pandemic. In the future, the company will focus on increasing exports to markets such as the US and the EU with high demand and high profit margins.
The group expected that its exports to the two markets would increase from 20-50 per cent. It would also wait for domestic steel sheet demand to increase strongly thanks to easing social distancing as production and business activities gradually stabilised in the new situation and construction projects continued to be implemented.
In the first 11 months of its financial year 2020-21, its steel sales reached 2 million tonnes, representing a 43 per cent year-on-year increase and surpassing 14 per cent of the whole year’s set target. Its revenue was estimated at VND42.5 trillion and after-tax profit of nearly VND4 trillion, increasing 74 per cent and 279 per cent from the same period last year respectively. These results also helped Hoa Sen Group surpass 29 per cent and 166 per cent of the whole year’s set targets of revenue and profit.
SSI Research assessed that the export channel can help Hoa Sen maintain full capacity in the near future.
Earlier, the group also said that it can maintain a stable sales volume of at least 160,000-170,000 tonnes a month, bringing in revenue of about VND4.5 trillion revenue thanks to its extensive export growth to more than 87 countries and territories.
Hoa Sen targets revenue of VND33 trillion and after-tax profit of VND1.5 trillion in its financial year of 2020-21, representing 20 per cent and 30 per cent year-on-year increases.
