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In Q1, Hoa Phat recorded interest expense of VND 1,359 billion, the highest on record, equivalent to more than VND 15 billion per day.
In its Q1 financial report, as of March 31 Hoa Phat’s total financial borrowings were just over VND 90,600 billion, down about VND 2,000 billion from the end of last year. The company attributed the decline mainly to repayment of loans related to the Dung Quất 2 project.
Despite lower debt, financing costs increased 18% to nearly VND 1,900 billion, also the highest on record. Of this amount, 72% was interest expense, equivalent to VND 1,359 billion. Hoa Phat said the rise was driven by the stopping of capitalization after Dung Quất 2 began operations and by high interest rates in Q1.
According to VnExpress, deposit rates at many banks for 12-month tenors are around 6.5%–7.5% per year, up 1–3 percentage points compared with year-end.
The Hoa Phat Dung Quất 2 production complex in Quảng Ngãi Province covers 280 hectares, with total investment of VND 85,000 billion and design capacity of 5.6 million tons of HRC per year. In Q1, the project operated at full capacity.
Hoa Phat stated that while it paid record interest costs, the company considers this item still within control and not yet pressuring core performance.
At the start of the year, revenue reached over VND 53,300 billion, up 40% year on year. Revenue from the steel business accounted for 96% of group revenue, equivalent to VND 51,221 billion. Steel sales volume rose to 3 million tons, up 26% year on year.
Revenue from financial activities reached over VND 5,900 billion, 13.5 times higher than the same period last year, mainly due to the group’s sale of a real estate project in Phố Nối, Hung Yên.
After-tax profit attributable to shareholders reached over VND 9,055 billion, up 2.7 times year on year. Parent company net profit reached VND 8,994 billion, up 170% versus Q1 2025 and the highest in five years.
For 2026, Hoa Phat targets revenue of VND 210,000 billion and after-tax profit of VND 22,000 billion, up 33% and 42% respectively from 2025. Based on Q1 results, the company has completed about 41% of its profit target.
At the annual general meeting, Chairman Trần Đình Long said Hoa Phat’s strategy is to continue expanding and investing deeply in the steel segment. The company also plans to develop real estate, focusing on prime-location projects with reasonable pricing and, most importantly, meeting real demand.
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