Hoa Phat’s profits for Q2 2020 (April-June) could be close to VND2,700bn ($116 mn) which is an increase of 32pc over the same period last year, and also the highest quarterly profits for the Vietnamese steelmaker.
In 2020, the company expects its revenue and profit after tax to grow by 33pc and 19pc, respectively, according to a press release issued on June 25 after a shareholders meeting.
The estimated profit after tax for the first six months in 2020 is VND5,000bn, up by 29.5pc as compared to the same period in the prior year.
The company plans to increase the total investment in Phase 1 and Phase 2 of Hoa Phat Dung Quat Steel integrated complex project was also approved by the shareholders. The total investment is about VND60,000bn, including VND 30,000bn, contributed by shareholders and the rest borrowed.
The completion of Phase 2 of the complex in the second half of 2020 and releasing commercial HRC products to market from September remains high on the company’s priority list.
The Group has operated Phase 1 stably with a capacity of 2mn mt of construction steel. For phase 2, with the support of European experts, the continuous rolling mill line of hot-rolled coils (HRC) has been able to run interlock tests better. For the project’s expansion phase, the applying procedure could take up to 2-3 years to complete.