Impressive first half sees Group raise targets for the remainder of the year.
The Hoa Phat Group adjusted its after-tax profit target for 2015 from VND2.3 trillion ($105.4 million) to VND3.25 trillion ($148.9 million), according to a decision released today by its Board of Directors (BOD). The expected dividend payment has also been increased, from 20 to 30 per cent.
In the first half of the year Hoa Phat earned VND1.9 trillion ($87 million) in revenue, reaching 83 per cent of the plan for 2015 as a whole. The BOD therefore increased its business targets for the reminder of the year.
Steel consumption saw strong growth in the first half, with Hoa Phat selling about 675,000 tonnes, a 52 per cent increase year-on-year. Sales of steel tube stood at 196,000 tonnes, a 44 per cent increase year-on-year.
The Group’s stock, coded HPG, was VND35,700 ($1.63) on July 27, increasing VND1,100. More than 2 million shares changed hands.
In the first three months total sales of steel in Vietnam reached 2.5 million tonnes, an increase of 25 per cent compared with the same period last year, according to the Vietnam Steel Association (VSA). Construction steel accounted for more than half, at 1.29 million tonnes, up 10 per cent against the first quarter of 2014.