Hoa Phat is a leading industrial production group in Vietnam. Initially, it was a company specializing in trading construction machines established in 1992. After that, the company expanded into other fields such as furniture, steel pipes, construction steel, refrigeration, real estate and agriculture. On November 15, 2007, Hoa Phat officially listed shares on Vietnam stock market with stock code HPG.
Hoa Phat Group holds the largest market share in Vietnam for construction steel and steel pipes. HPG's market capitalization reached USD 11 billion, which made in become one of the top 15 steel companies with the largest market capitalization in the world steel industry.
In 2022, Hoa Phat achieved a revenue of VND 142,000 billion, its profit after tax reached more than VND 8,400 billion, down 5% and 76% respectively compared to 2021.
Last year, Hoa Phat supplied the market with 7.2 million tons of steel including billet, construction steel, and hot rolled coil (HRC), down 7% compared to 2021.
The main contributors to sales volume were construction steel and HRC. Construction steel recorded 4.2 million tons, up 10% over the same period and contributing 59% in total steel production of all kinds.
Hoa Phat's steel pipe products also recorded an increase in output of about 11% compared to 2021.
Hoa Sen specializes in processing, manufacturing and trading steel products. The company was established on August 8, 2001 with initial charter capital of VND 30 billion. After a long period of construction and development, the company has made steady steps to become the leading trading enterprise in the field of steel and iron in Vietnam market.
The company has increased its charter capital to VND 4,446,252,130,000. The company currently accounts for 33.1% of the corrugated iron market share and 20.3% of the steel pipe market share according to the Vietnam Steel Association.
At the end of the fiscal year 2021 - 2022, HSG sales volume reached 1,819,009 tons, completing 91% of the plan. Its revenue reached VND 49,711 billion, completing 107% of the plan; consolidated profit after tax reached VND 251 billion, completing 17% of the plan.
Nam Kim Steel Joint Stock Company was established on December 23, 2002.
As a leading enterprise specializing in manufacturing galvanized steel sheets in Vietnam, Nam Kim Steel has always been a pioneer in technology investment to provide products that meet the best quality standards.
In 2022, Nam Kim Steel recorded a revenue of VND 23,071.25 billion, down 18.1% from the previous year and a negative profit after tax of VND 124.68 billion over the same period. In particular, gross profit margin decreased from 15.2% to 6.4%.
For 2023, Nam Kim Steel sets a business plan with a total revenue of VND 20,000 billion, an increase of 13.5% compared to the result of 2022 and an expected profit before tax of VND 400 billion.
Established in 1999, Pomina is a chain of three construction steel billet and rolling mills with a total annual capacity of 1.1 million tons of construction steel and 1.5 million tons of billet. Currently, Pomina is one of the largest and most modern construction steel manufacturers in Vietnam and the leading enterprise in the construction steel market in the Southern region.
In 2022, Pomina Steel earned VND 12,963.7 billion, down 7.5%; loss after tax was VND 1,167.6 billion, while the previous year's profit was VND 238.8 billion.
As of December 31, 2022, POM's total assets reached VND 11,028.7 billion, down 26.4% compared to the beginning of the year. Current assets accounted for 36% with VND 3,992 billion; cash and cash equivalents decreased by 51.3% to VND 202.3 billion; short-term receivables from customers decreased by 9% to VND 1,552 billion; inventories decreased by 74% to VND 1,235.5 billion.
Liabilities decreased by 24.6% to VND 8,510 billion, most of which was short-term debt with VND 7,722 billion. Short-term debt decreased by 25.5%; long-term debt decreased 41.4% to VND 788.3 billion.
Thai Nguyen Iron and Steel Joint Stock Company (TISCO) was established in 2009, formerly known as Thai Nguyen Iron and Steel Company established in 1959. Over 50 years of construction and development, Tisco has been constantly growing.
The current rolling steel production capacity of the company is 650,000 tons/year, bringing an average annual revenue of over VND 8,000 billion.
In 2022, the company recorded VND 11,697 billion in revenue, down 9% over the same period. Profit after tax was negative over VND 9 billion while 2021's profit after tax was VND 122 billion.
For 2022, the company planned to earn VND 20,105 billion in revenue and VND 90 billion in pre-tax profit. Thus, with the results achieved, this steel business only completed 58% of the revenue target, and 7% of the profit target.
As of December 31, 2022, Tisco's total assets stood at VND 10,184 billion. Cash and bank deposits decreased by 59% compared to the beginning of the year to VND 105 billion. Inventories increased 23% y/y to VND 1,760 billion.
In terms of capital structure, this steel company had very high short-term debt. Short-term liabilities amounted to VND 5,821 billion, while short-term assets were more than VND 2,404 billion, resulting in negative working capital of more than VND 3,400 billion.
Henry Tran – VietnamCredit
