MTA Vietnam is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726

Steel sheet group’s profit was stable in the first quarter of 2022, except for one large company that declined

06/05/2022
Lợi nhuận nhóm tôn thép ổn định trong quý 1/2022, ngoại trừ một doanh nghiệp lớn sụt giảm

Although a lot is expected from a stable production system as well as domestic and international distribution channels, recently the head, Mr. Le Phuoc Vu, suddenly said that HSG will sell all properties for sale in the near future. That is, HSG will specialize in distribution and no longer do production, and this is also Mr. Vu’s last effort before leaving the Group.

Although not as sudden as in the first quarter of 2021, the profit of steel group in this period is quite stable with a significant growth base after the sublimation period with steel price. However, Hoa Sen Group (HSG) – which received a lot of expectations, especially in the field of export – announced a record decrease in profit of 77%, to only 234 billion dong.

Specifically, in the period HSG recorded net revenue of 12,661 billion dong, up 16.7% over the same period last year. However, COGS increased sharply, causing gross profit to narrow to VND 1,430 billion, down 24% over the same period, gross profit margin decreased to 11.3%. Other expenses also increased, making HSG’s profit after tax only 234 billion dong, down 77% over the same period.

This result is contrary to most of the remaining units. For example, Nam Kim Steel (NKG) reported net revenue of 7,151 billion dong and gross profit of 957 billion dong, up 47% and 157% respectively over the same period. Not to mention, NKG’s gross profit margin was also at 13.4% in the first quarter of 2022, higher than 12.6% in the same period.

Deducting expenses, the company’s net profit reached 507 billion, an increase of 59% compared to the first quarter of 2021. Similar to HSG, the growth story of NKG in the current context is the export market. Reporting to shareholders at the recent Annual General Meeting of Shareholders, the representative of NKG said that the output in 2022 could not reach the peak as in the 2-3/2021 quarter when accounting for 70-80%, but it is expected to remain well. with export volume equivalent to the previous year.

As of March 31, 2022, NKG’s inventory is still at a high level with about 8,500 billion VND – enough to meet the sales demand for a quarter. NKG’s existing export orders are now closed until mid-July 2022.

“The forecast for steel prices in 2022 is still high, ranging from $840-850/ton or more. This is due to production costs, transportation costs, coal prices, energy prices and also prices. ore has increased to a very high level, thereby forming a high cost of capital for HRC steel producers,” added NKG CEO.

Similar in terms of business, Ton Dong A (TDA) also closed the first quarter of the year with sales revenue of 6,134 billion, up 35% and gross profit of 541 billion, up 40% over the same period. Although selling expenses recorded a sudden increase of 78% to 281 billion dong, TDA’s EAT still increased by more than 11% to 204.5 billion dong.

The explanatory report said that during the period when the subproject promoted the domestic sales channel, domestic revenue accounted for 54% of the consolidated revenue of this period. In the first quarter of 2022, the subproject recorded production of 220,800 tons of galvanized steel and consumed 226,400 tons, accounting for 18.1% of the market share. Compared to other enterprises, Ton Dong A is only inferior to HSG.

Or “big brother” Hoa Phat (HPG), the company achieved VND 44,400 billion in revenue, up 41% and profit after tax reached VND 8,200 billion, up 17% compared to the first quarter of 2021. Note, the production of iron and steel products and steel products contributed 90% to HPG’s overall results in the first quarter of 2022.

Currently, HPG has a crude steel capacity of over 8 million tons/year, equivalent to about 700,000 tons/month. HPG said that in the first quarter of 2022, the Covid-19 epidemic was still complicated, the prices of input materials for steel production such as coke coal and iron ore increased. However, Hoa Phat’s factories always operate at full capacity to meet market demand. Hoa Phat has produced 2.16 million tons of crude steel, up 8% over the same period….

Lợi nhuận nhóm tôn thép ổn định trong quý 1/2022, ngoại trừ một doanh nghiệp lớn sụt giảm - Ảnh 2.

Back to HSG, announcing a lot of good news during the hot bull market made the company become the focus of investors. Accordingly, the market price also grew very strongly with sudden liquidity.

Although a lot is expected from a stable production system as well as domestic and international distribution channels, recently the head, Mr. Le Phuoc Vu, suddenly said that HSG will sell all properties for sale in the near future. That is, HSG will specialize in distribution and no longer do production, and this is also Mr. Vu’s last effort before leaving the Group.

“Like the previous congress, we clearly determined that HSG will have a turning point, the new strategy is to form the Hoa Sen Home system. Now, when people talk about HSG, they mean Hoa Sen corrugated iron pipes, Hoa Sen steel pipes. But in the next 5-10 years, when it comes to HSG, people will refer to Hoa Sen Home building material distribution system, if it works well, this system can achieve current revenue, approximately VND 50,000 billion. VND (more than 2 billion USD).

The steel industry is currently at a huge disadvantage, P/E is high, but the stock keeps falling, once it reaches 50,000 VND/share, it is depreciated. Therefore, Hoa Sen Home will be a turning point to create value for HSG, shareholders and employees.

In general, HSG does not invest in production anymore. In the coming time, properties not related to the distribution system will be sold out, including hotel projects, industrial parks… As for the steel segment, if we want to develop further, we have to invest in upstream, like how A few years ago, HSG invested in Ca Na, but it failed because we had obstacles: blocking the envelope, preventing the relationship,” said Mr. Vu.

Lợi nhuận nhóm tôn thép ổn định trong quý 1/2022, ngoại trừ một doanh nghiệp lớn sụt giảm - Ảnh 3.

This year’s HSG congress also agreed on the plan to convert HSG one-member limited liability company into Hoa Sen Plastic Joint Stock Company, to take over all production and business activities of the plastic segment and establish a new Construction Materials Distribution Joint Stock Company. and Hoa Sen Furniture (hereinafter referred to as Hoa Sen Home) to take over all business activities of distribution, retail and Hoa Sen Home segments.

It is expected that, when the two companies above meet the legal requirements, the Board of Directors will continue to submit to the General Meeting of Shareholders in the following periods to approve the IPO and listing of these two companies on the stock market.

By CafeF

Share this post

You may be interested in

21/06/2022
Conference “3D Metal Printing: From Potential To Application Reality For Professional Manufacturing In Vietnam”
This special topic of 3D Metal Printing gathers experts and engineers from domestic and abroad to...
20/06/2022
Talkshow “World Class Manufacturing: How To Get There From Here”
World Class Manufacturing (WCM) is a structured and integrated manufacturing system that covers...
20/06/2022
Conference “Accelerating Vietnam’s Manufacturing Transformation Towards Smart Production”
Not apart from the picture of digital transformation around the world, Vietnam manufacturers are...
20/06/2022
Talkshow “How To Improve Business Collaboration And Funding Capacity For Manufacturing Firm”
Besides the enterprise’s capital, mobilized capital (borrowing or issuing additional shares)...
23/05/2022
Seminar “How To Reduce 8+1 Wastes In Manufacturing Operations”
With aims to support the local enterprises in manufacturing management and operation in the “new...
06/05/2022
Promoting energy saving in Vietnamese industries
On May 5 and 6, 2022, in Hanoi, the Ministry of Industry and Trade will coordinate with the World...
06/05/2022
Businesses worry about cutting off the supply of raw materials
The wave of re-epidemic outbreaks in China caused certain difficulties in the electronics...
06/05/2022
Steel sheet group’s profit was stable in the first quarter of 2022, except for one large company that declined
Although a lot is expected from a stable production system as well as domestic and...
06/05/2022
Domestic mechanical engineering enterprises: Is it possible to seize the golden opportunity?
In the wind power segment alone, by 2045 with an expected capacity of 40,000 MW and can be...
06/05/2022
COVID-19 is under control, industrial production increases by 9.4% over the same period
After the COVID-19 epidemic was under control, businesses were more proactive in terms of labor...

Subscribe to Our eNewsletters

    captcha
    BOOK A STAND
    ONLINE REGISTRATION
    Facebook stream
    Comments Box SVG iconsUsed for the like, share, comment, and reaction icons
    3 months ago
    MTA VIETNAM

    Tham Gia Giờ Trái Đất Cùng MTA Vietnam Để Chung Tay Kiến Tạo Tương Lai
    [English below]
    Là một phong trào môi trường có quy mô lớn nhất thế giới, Giờ Trái Đất đã tạo nguồn cảm hứng và thúc đẩy các cá nhân, cộng đồng, doanh nghiệp và tổ chức trên 190 quốc gia và vùng lãnh thổ hành động vì biến đổi khí hậu và mất môi trường tự nhiên. Đây cũng là sự kiện thuộc chuỗi phát triển bền vững từ Informa Markets với mong muốn tương tự. Hãy cùng MTA Vietnam tắt đèn từ 20:30-21:30 tối nay, thứ Bảy ngày 26/03/2022 và lắng nghe thông điệp hành động từ WWF toàn cầu trong Giờ Trái Đất 2022 nhé!
    ---------------------//
    Join Earth Hour with MTA Vietnam To Shape Our Future

    As the world's largest environmental movement, Earth Hour has inspired and motivated individuals, communities, businesses and organizations in 190 countries and territories to take action for climate change and loss of natural environment. This is also an event in the sustainable development chain from Informa Markets with the same desire. Let's turn off the lights with MTA Vietnam from 20:30-21:30 tonight, Saturday, 26/03/2022 and listen to the message from WWF during Earth Hour 2022!

    #earthhour #MTAVietnam #MTAHanoi #Manufacturing #Engineeering #MTAVietnamserries #MTAVietnamGoesHybrid #ManufacturingIndustry #MTAVietnam2022
    ...

    Tham Gia Giờ Trái Đất Cùng MTA Vietnam Để Chung Tay Kiến Tạo Tương Lai
[English below]
Là một phong trào môi trường có quy mô lớn nhất thế giới, Giờ Trái Đất đã tạo nguồn cảm hứng và thúc đẩy các cá nhân, cộng đồng, doanh nghiệp và tổ chức trên 190 quốc gia và vùng lãnh thổ hành động vì biến đổi khí hậu và mất môi trường tự nhiên. Đây cũng là sự kiện thuộc chuỗi phát triển bền vững từ Informa Markets với mong muốn tương tự. Hãy cùng MTA Vietnam tắt đèn từ 20:30-21:30 tối nay, thứ Bảy ngày 26/03/2022 và lắng nghe thông điệp hành động từ WWF toàn cầu trong Giờ Trái Đất 2022 nhé!
---------------------//
Join Earth Hour with MTA Vietnam To Shape Our Future

As the worlds largest environmental movement, Earth Hour has inspired and motivated individuals, communities, businesses and organizations in 190 countries and territories to take action for climate change and loss of natural environment. This is also an event in the sustainable development chain from Informa Markets with the same desire. Lets turn off the lights with MTA Vietnam from 20:30-21:30 tonight, Saturday, 26/03/2022 and listen to the message from WWF during Earth Hour 2022!

#earthhour #MTAVietnam #MTAHanoi  #Manufacturing #Engineeering #MTAVietnamserries #MTAVietnamGoesHybrid #ManufacturingIndustry #MTAVietnam2022
    3 months ago
    MTA VIETNAM

    MTA Vietnam 2022 Is Ready To Welcome The Return Of Our Exhibitors
    [Vietnamese below]
    With the latest news of ZERO QUARANTINE for international travelers entering Vietnam, MTA Vietnam 2022 is ready to welcome all of the international exhibiting companies to this year's exhibition at SECC, District 7, Ho Chi Minh City, Vietnam from 06-09/07/2022. MTA Vietnam is the leading prestigious exhibition of the engineering and manufacturing industry in Vietnam with a lot of experiences from organization to marketing promotion, promising in this return, MTA Vietnam will bring up many surprises to the community in and out of the country. Contact us to BOOK YOUR STAND NOW!
    ----------//
    MTA Vietnam 2022 Đã Sẵn Sàng Chào Đón Sự Trở Lại Của Các Nhà Trưng Bày

    Với những tin tức mới nhất về việc KHỒNG CẦN CÁCH LY đối với người nhập cảnh, MTA Vietnam 2022 đã sẵn sàng để chào đón các đơn vị trưng bày quốc tế đến với triển lãm năm nay tại SECC, Quận 7, tp. Hồ Chí Minh, Việt Nam từ 06-09/07/2022. MTA Vietnam là triển lãm uy tín hàng đầu trong ngành cơ khí chế tạo tại Việt Nam với nhiều kinh nghiệm từ khâu tổ chức đến quảng bá, tin chắc rằng sự trở lại lần này của MTA Vietnam sẽ làm cho cộng đồng cơ khí chế tạo trong và ngoài nước không khỏi bất ngờ. Liên hệ với chúng tôi để ĐĂNG KÝ GIAN HÀNG NGAY HÔM NAY!

    MTA Vietnam 2022
    ⏰ 06-09.07.2022
    📍 Trung tâm Hội chợ Triển lãm Sài Gòn - SECC, 799 Nguyễn Văn Linh, Quận 7, Tp. Hồ Chí Minh, Việt Nam
    ☎️ (+84) 28 3622 2588
    📩 [email protected]

    #MTAVietnam #MTAHanoi #Manufacturing #Engineeering #MTAVietnamserries #MTAVietnamGoesHybrid #ManufacturingIndustry #MTAVietnam2022
    ...

    MTA Vietnam 2022 Is Ready To Welcome The Return Of Our Exhibitors
[Vietnamese below]
With the latest news of ZERO QUARANTINE for international travelers entering Vietnam, MTA Vietnam 2022 is ready to welcome all of the international exhibiting companies to this years exhibition at SECC, District 7, Ho Chi Minh City, Vietnam from 06-09/07/2022. MTA Vietnam is the leading prestigious exhibition of the engineering and manufacturing industry in Vietnam with a lot of experiences from organization to marketing promotion, promising in this return, MTA Vietnam will bring up many surprises to the community in and out of the country. Contact us to BOOK YOUR STAND NOW!
----------//
MTA Vietnam 2022 Đã Sẵn Sàng Chào Đón Sự Trở Lại Của Các Nhà Trưng Bày

Với những tin tức mới nhất về việc KHỒNG CẦN CÁCH LY đối với người nhập cảnh, MTA Vietnam 2022 đã sẵn sàng để chào đón các đơn vị trưng bày quốc tế đến với triển lãm năm nay tại SECC, Quận 7, tp. Hồ Chí Minh, Việt Nam từ 06-09/07/2022. MTA Vietnam là triển lãm uy tín hàng đầu trong ngành cơ khí chế tạo tại Việt Nam với nhiều kinh nghiệm từ khâu tổ chức đến quảng bá, tin chắc rằng sự trở lại lần này của MTA Vietnam sẽ làm cho cộng đồng cơ khí chế tạo trong và ngoài nước không khỏi bất ngờ. Liên hệ với chúng tôi để ĐĂNG KÝ GIAN HÀNG NGAY HÔM NAY!

MTA Vietnam 2022
⏰ 06-09.07.2022
📍 Trung tâm Hội chợ Triển lãm Sài Gòn - SECC, 799 Nguyễn Văn Linh, Quận 7, Tp. Hồ Chí Minh, Việt Nam
☎️ (+84) 28 3622 2588
📩 mtavietnam@informa.com

#MTAVietnam #MTAHanoi  #Manufacturing #Engineeering #MTAVietnamserries #MTAVietnamGoesHybrid #ManufacturingIndustry #MTAVietnam2022
    Load more