Hoa Phat Group (HPG) Reports 2025 Net Profit of VND 15.5T, Up 29% YoY

Overview

Hoa Phat Group (HPG) reported 2025 revenue of VND 158.332 trillion and net profit of VND 15.515 trillion, exceeding its annual profit target. The results, disclosed in the company’s 2026 annual report, show year-on-year growth of 13% in revenue and 29% in net profit, driven by record steel sales volume and the completion of the Dung Quat 2 steel complex.

Key Facts

• 2025 revenue reached VND 158.332 trillion, achieving 93% of the annual plan and growing 13% year-on-year.
• 2025 net profit after tax was VND 15.515 trillion, achieving 103% of the annual plan and growing 29% year-on-year.
• Total steel sales volume exceeded 10 million tons for the first time, a 25% increase from 2024.
• Sales of hot-rolled coil (HRC) grew by more than 70% year-on-year.
• The company maintained its leading market share in Vietnam for construction steel (37.6%) and steel pipe (31.2%).
• The Dung Quat 2 integrated steel production complex was completed and became operational in September 2025.
• Construction began in December 2025 on Vietnam’s first high-speed rail production plant, with a planned capacity of 700,000 tons per year and first products expected in 2027.

What Happened

Hoa Phat Group released its 2026 annual report, which opened with a message from billionaire Chairman Trần Đình Long. In the report, Long affirmed the group’s strategy of developing based on large-scale, modern production and pioneering new technology. He stated that in all circumstances, Hoa Phat prioritizes good management of cash flow, inventory, and flexible adaptation to market conditions, while controlling the progress and efficiency of major investment projects.

The report detailed that the group’s core steel production business contributed 93% of total revenue in 2025. The completion of the Dung Quat 2 complex and strong HRC sales were key drivers. Long highlighted that ongoing investment in large-scale projects has made Hoa Phat the largest crude steel producer in Southeast Asia, on par with the world’s top 30 steel enterprises by the end of 2026 with a capacity of 16 million tons per year.

Market Context

HPG shares trade on the Ho Chi Minh Stock Exchange (HOSE). The stock closed at VND 28,000 on April 15, 2026, down 1.75% on volume of 27.5 million shares. The earnings report provides fundamental context for the stock’s performance in the Basic Resources sector, contrasting the company’s strong operational growth with recent market sentiment.

Strategic Significance

The 2025 results validate Hoa Phat’s vertical integration and scale strategy, which focuses on controlling production from raw materials to high-value finished products like automotive and rail steel. The commencement of the high-speed rail plant project positions the company to capture demand from Vietnam’s planned infrastructure boom, aiming to localize supply for major national projects and reduce import dependence in a strategic industry.

What to Watch

• The operational ramp-up and financial contribution from the Dung Quat 2 steel complex throughout 2026.
• Progress updates and capital expenditure details for the high-speed rail production plant, targeting first products in 2027.
• Quarterly earnings reports to monitor if the strong growth in HRC sales and overall volume is sustained.
• Updates on market share metrics within Vietnam’s construction steel and steel pipe segments.
• Management commentary on raw material cost trends and their impact on margins in the steel sector.