Vietnamese steelmaker Hoa Phat has projected a post-tax profit of VND9tn (US$390mn) in 2020, up 19pc from 2019.
The company’s board recently approved the production and business plan for 2020 which targets an output of 3.5-3.6mn mt for construction steel, up by 25-29pc from its 2019 volumes. Of the total volume, 1mn mt of steel will be produced in southern Vietnam, the company indicated.
Hoa Phat sold 2.8mn mt of construction steels in 2019, increasing 16.8pc from the previous year. Exports accounted for 265,000mt or about 10pc of steel sold.
The steelmaker has targeted a 33pc rise in revenue toVND86tr in 2020, compared with last year. The company reported a post-tax profit of VND2.3tr in Q1 2020, up 27pc against the same period last year. Hoa Phat’s revenue increased 28pc to VND19.5tr in Q1 2020 compared to the same quarter in 2019.
The company increased both its revenue and post-tax profit goals for 2020 despite a weaker steel demand due to COVID-19. Hoa Phat previously targeted a revenue of VND65tn and after-tax profit of over VND7.5tn in 2020, surpassing 2019 by 13pc. Despite weaker global steel demand due to COVID-19,
The board of directors also approved the increase in total investment for phase 1 and phase 2 of Hoa Phat Dung Quat Iron and Steel Complex in the central province of Quảng Ngãi. The total investment will now be around VND60tn, of which VND30tn will be contributed by shareholders, VND25tn will be lent by credit institutions and VND5tn lent by members of the group.
The company has two steel complexes in Hai Duong and Dung Quat with access to river ports and seaports.