Dung Quat 2 is not just an ordinary investment project. With a capacity of 5.6 million tons of hot-rolled steel coils per year, this project plays a pivotal role in Hoa Phat’s development strategy. As of Q2 2024, the project progress has reached 80% in phase 1 and 50% in phase 2. Hoa Phat expects to launch the first products of phase 1 to the market by the end of 2024.
Notably, in just one quarter, Hoa Phat’s construction work in progress increased by more than VND 15,000 billion, mostly due to additional capital injections into Dung Quat 2. This quarter also witnessed Hoa Phat’s strongest investment in Dung Quat 2, demonstrating the group’s determination to accelerate the project.
Upon completion, Dung Quat 2 will boost Hoa Phat’s total crude steel production capacity to over 14 million tons per year, propelling the group into the top 30 steel companies worldwide.
In addition to the news about Dung Quat 2, Hoa Phat’s Q2 financial results are also noteworthy. Net revenue reached VND 39,556 billion, up 34% year-on-year. Net profit reached nearly VND 3,320 billion, a surge of 127%. This performance was mainly driven by strong revenue growth, improved profit margins, and reduced financial expenses.
However, Hoa Phat also faces challenges due to the influx of cheap imported steel. In the first half of the year, imports of HRC steel increased by 50% compared to the same period in 2023, intensifying competition for Hoa Phat’s HRC steel sales in the domestic market.
Hoa Phat earns over VND 3,300 billion in profit in Q2, a 2.3-fold increase year-on-year
