It is known that the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project was approved for investment policy in June 2021 with an area of 279 hectares, in Dung Quat Economic Zone, Binh Son district, Quang Ngai province. .
Investing in the "super steel project" of 85,000 billion in Quang Ngai, how is Hoa Phat's finances? (illustration photo: Internet).
The project is invested by Hoa Phat Group, with a total investment capital of about 85,000 billion VND, attracting 8,000 workers, design capacity of 5.6 million tons/year. As expected, the Hoa Phat Dung Quat 2 project will be completed and put into operation in 2024. After implementing, optimizing the capacity of the Hoa Phat Dung Quat 1 Iron and Steel Production Complex project from 4 million tons increased to 6 million tons/year, the total capacity of Hoa Phat Dung Quat 1 and 2 is 11.6 million tons/year.
Currently, Hoa Phat is focusing resources to complete legal procedures, investment, and construction of the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project. After more than 1 year of implementation, this project has achieved progress. 35% of workload.
How does Hoa Phat do business?
According to the newly announced business results report for the third quarter of 2023, Hoa Phat Group Joint Stock Company (code: HPG) recorded revenue of 28,766 billion VND, down 16% compared to the same period last year. Despite the decline in revenue, gross profit still earned 3,594 billion VND, while the same period last year was 1,000 billion VND.
Due to high financial costs (1,438 billion VND) and some other costs, Hoa Phat's profit after tax in the third quarter of 2023 recorded 2,000 billion VND, an increase of 212% compared to the same period in 2022 and 38% compared to the first quarter. before. This is quite an impressive number when in the same period of 2022, this enterprise lost up to 1,785 billion VND.
Accumulated for the first 9 months of 2023, Hoa Phat will reach VND 84,430 billion in revenue and after-tax profit at VND 3,831 billion; down 27% and 63% respectively compared to the first 9 months of 2022. Compared to the 2023 plan, Hoa Phat has completed 48% of its profit target.
According to Hoa Phat, in the context of raw material prices in the third quarter of 2023 remaining stable with sales output gradually improving each quarter, sales of steel products in the third quarter increased by 12%. % compared to the second quarter and 24% compared to the first quarter of the year. In addition, maintaining inventory management at a low level contributed to improving profit margins in the third quarter.
Accumulated in the first 9 months of 2023, Hoa Phat Group produced 4.8 million tons of crude steel, down 21% compared to the same period in 2022. Sales output of all types of steel (excluding steel pipe and galvanized steel products) reached 4.6 million tons, down 19%.
In addition, Hoa Phat's construction steel and high quality steel recorded 2.6 million tons, down 25% over the same period last year. Of which, the export market contributed nearly 490,000 tons. HRC products reached nearly 2 million tons, down 3% over the same period in 2022. In addition, Hoa Phat also provided the market with 488,000 tons of steel pipes, 240,000 tons of galvanized steel sheets of all kinds, down 14% and 3% respectively. compared to the first 9 months of 2022.
By the end of the third quarter of 2023, Hoa Phat Group continued to lead the market share of construction steel and steel pipes in Vietnam with 33.3% and 27.3% respectively.
As of September 30, 2023, Hoa Phat's total assets reached 173,507 billion VND. Looking at the capital structure of Hoa Phat Group, this enterprise still accounts for the majority of equity with 99,865 billion VND and debt of 73,641 billion VND. However. Hoa Phat Group's debt structure is formed mainly from short-term debt with 64,117 billion VND. Notably, short-term financial lease loans and debts accounted for 49,237 billion VND.
In addition, the cost of construction in progress also recorded an increase from VND 13,334 billion to VND 16,429 billion. These are the projects that Hoa Phat Group is promoting investment in, typically: Dung Quat Iron and Steel Complex Project (12,731 billion VND); Container project (1,890 billion VND); household electrical appliances project (271 billion VND); Hai Duong Iron and Steel Complex project (356 billion VND); agricultural projects (382 billion VND); along with a number of other projects (796 billion VND)…
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