Steelmaker sales could notch new $1b record

Monday, Mar 31, 2014 09:48

HPG plans to use VND41 billion ($1.9 million), about 5 per cent of the profit in excess of last year's target, to reward the company's managers.— Photo satthep

HA NOI (Biz Hub) — Hoa Phat Group (HPG), Viet Nam's second largest steelmaker, has estimated its turnover could exceed US$1 billion for the first time in 2014, allowing it to pay a shareholder dividend of up to 30 per cent.

The information was released by the group's chairman, Tran Dinh Long, at its annual shareholders' meeting yesterday in Ha Noi.

Long said first-quarter revenue had reached VND6 trillion ($284.4 million) with a profit of VND800 billion ($37.9 million).

"Based on these positive results, HPG is confident that it can hit its business targets this year," Long said.

Hoa Phat Group is among the few companies that performed well last year, despite the economic slowdown.

The group reported a total revenue of VND19.2 trillion ($910 million) and a net consolidated profit of VND2.01 trillion ($95.3 million) in 2013, exceeding its yearly targets by 4 per cent and 68 per cent, respectively.

Steel production continued to play the leading role, contributing 78.7 per cent of total revenue and nearly 83 per cent of the group's profits, thanks to the Hoa Phat Integrated Steel Complex which was put into operation in October last year.

In 2013, its construction steel output reached 727,000 tonnes, an increase of 17 per cent compared to 2012, while sales grew 699,000 tonnes, up 14 per cent. From 2014 onward, combining the full capacity of the complex of 850.000 tonnes per year, the group's total construction steel production capacity will reach 1.15 million tonnes per year.

Regarding its liability, Long said HPG's borrowing was only VND5-7 trillion ($237-332 million), while its equity reached nearly VND10 trillion ($473.9 million). HPG also deposited nearly VND2 trillion ($94.8 million) in local banks last year.

HPG has set very ambitious targets for this year. The group plans to raise its charter capital to nearly VND4.19 trillion ($199.5 million), while the revenue target is set at VND23 trillion ($1.1 billion) and the post-tax profit goal is VND2.2 trillion ($104.3 million).

The projected dividend rate has increased from 20 per cent to 30 per cent, of which 15 per cent will be paid in cash and the remainder will be offered in shares.

HPG plans to use VND41 billion ($1.9 million), about 5 per cent of the profit in excess of last year's target, to reward the company's managers.

Long said it was a moderate rate given the group's impressive business results. — VNS

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