Hòa Phát posts (HPG) VNĐ15.5 trillion profit in H1, achieves 70% of annual target

Hòa Phát posts (HPG) VNĐ15.5 trillion profit in H1, achieves 70% of annual target

The company has set 2026 targets of VNĐ210 trillion in revenue and VNĐ22 trillion in after-tax profit.

A hot-rolled coil (HRC) production line of Hòa Phát Group. — Photo courtesy of the firm

Hòa Phát Group reported strong earnings growth in the first half of 2026, with net profit more than doubling year-on-year as higher steel output and sales boosted performance.

In the second quarter, the steelmaker posted revenue of VNĐ55.6 trillion (US$2.14 billion), up 53 per cent from the same period last year, while after-tax profit rose 51 per cent to VNĐ6.42 trillion.

For the first six months of the year, revenue reached VNĐ108.9 trillion, up 47 per cent year-on-year, while after-tax profit surged 103 per cent to VNĐ15.48 trillion.

The company has set 2026 targets of VNĐ210 trillion in revenue and VNĐ22 trillion in after-tax profit. With its first-half results, Hòa Phát has completed 52 per cent of its revenue goal and 70 per cent of its annual profit target.

Steel remained the group's core business, contributing 93 per cent of revenue and 68 per cent of profit. Hòa Phát also paid VNĐ8.48 trillion in taxes and other budget contributions across 20 provinces and cities during the six-month period.

Crude steel production exceeded 3.6 million tonnes in the second quarter, up 48 per cent year-on-year, while sales of construction steel, high-quality steel, hot-rolled coil (HRC) and steel billets reached 3.5 million tonnes, an increase of 35 per cent.

In the first half, crude steel output rose 36 per cent to nearly 7 million tonnes. Combined sales of HRC, construction steel, high-quality steel and billets climbed 32 per cent to 6.5 million tonnes, with HRC sales jumping 57 per cent to nearly 3.4 million tonnes.

The group also sold 453,000 tonnes of steel pipes, up 13 per cent, while coated steel sales slipped 5 per cent to 189,000 tonnes.

Agriculture remained Hòa Phát's second-largest contributor to revenue and profit after steel. During the first six months, the company sold nearly 177,000 tonnes of animal feed, more than 212,000 pigs, over 10,000 cattle and 170.7 million eggs.

The group also continued expanding beyond steel, launching several new industrial park projects in Hải Phòng, Bắc Ninh and Hưng Yên, covering a combined 1,125ha.

In its home appliance business, Hòa Phát broke ground on a $50 million refrigerator factory in Phú Mỹ with an annual design capacity of 1.2 million units, aiming to expand exports and capture manufacturing orders shifting to Việt Nam.

Hòa Phát, Southeast Asia's largest steel producer with annual capacity of 16 million tonnes, is also accelerating construction of its Dung Quất rail and special steel plant. The project, designed to produce 700,000 tonnes a year, is more than 50 per cent complete after seven months of construction, with commercial production of railway rails expected to begin in the second quarter of 2027 to serve major infrastructure projects in Việt Nam. 

Bizhub