Hoa Phat Group has posted revenue and post-tax profit gains of VND27.6 trillion (US$1.18 billion) and VND4.4 trillion ($189.4 million) in the first half of the year, increasing 30 per cent and 27 per cent from the same period last year, respectively.

The results mean the group has already reached 55 per cent of its annual profit target.

This year, the group has targeted revenue of VND55 trillion and after-tax profit of VND8.05 trillion. In the second quarter alone, its revenue reached VND14.4 trillion while post-tax profit hit VND2.2 trillion. These represented increases of 34 per cent and 43 per cent from the corresponding period last year.

Hoa Phat’s construction steel output in the first six months of the year was 1.1 million tonnes, a slight increase from the same period last year. This has been a positive result given the group had to close one blast furnace for maintenance and equipment repairs for two months.

The group has maintained its leading position in the country’s steel industry with market share of 22.2 per cent, with domestic consumption accounting for its biggest market.

Its high quality wire rod steel has continued to receive orders from both inside and outside the country, including 58,000 tonnes to Australia, Japan, Malaysia and the Philippines, accounting for more than a half of its export volume to the international market.

The group’s sale of steel pipe also posted a 14.8 per cent year-on-year rise to 314,000 tonnes from January-June, of which exports rose by over 60 per cent with turnover of US$8.5 million.

Hoa Phat Steel Pipe Joint Stock Company has decided to invest in a large pipe production line which is expected to become operational at the start of 2019. It will be the first and only big steel pipe project in the northern region, contributing to its leading position in the country.

It also provided high quality galvanised steel to the market in the second quarter of this year.

Other industrial products such as spare parts, interior and refrigeration have been in stable production, contributing 6 per cent to the group’s total revenue.

Hoa Phat also completed its Mandarin Garden 2 project and handed it over to customers in the first half. — VNS