HMC Q1 2024 Business Results
Unit: Billion VND
 Source: VietstockFinance
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In Q1 2024, the core business picture of HMC looked gloomier than the same period. Specifically, the enterprise recorded net revenue of nearly 830 billion VND and gross profit of over 16 billion VND, down 7% and 13% respectively year-on-year.
The only bright spot was in financial activities. In the first quarter, HMC recorded a 53% increase in financial revenue to over 10 billion VND, while financial expenses decreased sharply by 18% to 8.5 billion VND.
As a result, HMC posted a net profit of 3.6 billion VND in Q1 2024, up 43% year-on-year, mainly due to the low base in the same period when the Vietnamese steel industry was in a sharp downturn. In fact, the profit of nearly 4 billion VND a quarter is very low when looking back at the history of HMC.
With the Q1 results, HMC achieved 23% of its profit after tax plan for 2024.
| HMC Quarterly Net Profit |
Cautious Plan
2024 is assessed by many experts as the year of recovery for the steel industry after more than a year of difficulties. However, the management of HMC is still cautious in assessing the prospects for this year.
HMC believes that the 2024 economy will still be severely affected by the economic and political instability of 2022-2023. On the other side of the globe, the US and Europe continue to maintain a high-interest rate environment, while China needs more time to implement policies to stimulate economic growth. This will also affect the economic growth and steel industry of Vietnam.
“In addition, the war situation, the risk of supply chain disruption, the prices of energy and raw materials are likely to escalate, also affecting the steel industry. Although steel prices have decreased and are at their lowest in the past 2 years, it is expected that the demand for consumption in 2024 will not yet recover, especially in the real estate market,” HMC shared in the annual report. “In addition, the domestic consumption situation is also very challenging”.
Therefore, HMC set a revenue target of 3,036 billion VND and after-tax profit of 16 billion VND in 2024, down 3% and 24% respectively compared to 2023. The expected sales volume is 210,000 tons and the dividend ratio is 5%.
