Company Insight

Hoa Phat Group Joint Stock Company (HPG) is one of Vietnam’s leading steel manufacturers. In 2025, HPG recorded record-high revenue, achieving 103% of its annual revenue target and 93% of its projected profit plan. In Q4/2025, HPG reported net revenue of VND 46,176bn (+27% QoQ, +34% YoY) and NPAT of VND 3,888bn (-3% QoQ, +38% YoY), driven by construction steel sales of 1.3mn tonnes (+24% QoQ, +14% YoY) amid peak year-end demand and HRC volume of 1.6mn tonnes (+26% QoQ, +144% YoY) following DQ2 Phase 2’s operation from Sep-2025 and AD duties on Chinese HRC, while steel pipe reached 221k tonnes (-2% QoQ, +8% YoY) and galvanized steel 103k tonnes (-14% QoQ, +1% YoY). GPM declined to 13.9% (-2.8 ppts QoQ, +1.2 ppts YoY) due to higher depreciation after DQ2’s full ramp-up and an 8% QoQ increase in coking coal prices amid weather-related supply disruptions in Australia, with agriculture margins also narrowing on lower hog prices. For FY2025, net revenue totaled VND 156,116bn (+12% YoY), NPAT VND 15,515bn (+19% YoY), and GPM 15.7% (+2.4 ppts YoY).  

Entering 2026, the company is expected to continue benefiting from the recovery in domestic steel consumption, with significant contributions from the Dung Quat 2 complex. Based on our valuation using the P/E and DCF methodologies, we derive an updated target price for HPG of VND 33,000 per share.