On August 19th, Hoa Phat Group Joint Stock Company (HoSE: HPG) commenced construction of a high-speed rail track and special structural steel production plant in Dung Quat, Quang Ngai. This facility aims to supply products for key national projects, including the North-South high-speed railway, the Hai Phong-Hanoi-Lao Cai railway, and several urban rail projects in Hanoi and Ho Chi Minh City.
Previously, in late May, Hoa Phat and Germany’s SMS Group signed a contract to provide technology and production lines for rail and structural steel with a capacity of 700,000 tons per year.
According to the group, this is Europe’s most advanced production line, featuring a 4-axis super-flexible rolling mill system. This ensures superior precision and consistent quality, meeting international high-speed rail standards. Currently, 90% of global rail rolling mills use SMS Group’s technology and equipment.
With this investment, Hoa Phat Group will become the only company in Southeast Asia capable of producing high-speed rail tracks. The company expects to deliver its first batch of tracks for high-speed rail in Q1 2027.
In a May media interview, Mr. Nguyen Viet Thang, CEO of Hoa Phat, stated that the group has not disclosed specific profit figures. Therefore, claiming the group is indifferent to profits is inaccurate.
Vietcap estimates the pre-tax profit of the high-speed rail track plant at 773 billion VND annually.
According to the CEO, profit remains a core objective, as it directly benefits shareholders. Hoa Phat does not engage in projects solely for brand recognition. Thus, the group carefully considers and cautiously executes every investment plan.
“We never pursue projects knowing they will result in losses,” Mr. Thang emphasized.
Hoa Phat’s leadership added that for typical projects, HPG proceeds only when there is a 90% likelihood of success. However, for pioneering sectors like high-speed rail track production, the group accepts a 50% success rate due to long-term growth potential and opportunities to expand into other projects.
Vietcap’s analysis report projects the plant will generate approximately 11,400 billion VND in annual revenue and contribute around 150 billion VND to the state budget.
Based on the projected budget contribution, Vietcap estimates the plant’s annual pre-tax profit at 773 billion VND, corresponding to a pre-tax margin of nearly 7%. This is equivalent to a gross margin of approximately 10%, lower than Hoa Phat’s other steel segments (13.3% gross margin in 2024).
Bao Viet Securities believes that with a designed capacity of 700,000 tons per year, the rail track plant will supply high-value, advanced technology products, addressing domestic shortages and driving the group’s business growth.
If the plant achieves 70% of its design capacity (500,000 tons annually), it will break even.
Daily Investment in HPG: Unlocking Astonishing Returns with Hoa Phat’s ‘Roller’ Strategy
From an initial investment of VND 127,000 on the first trading day, consistently purchasing one share daily for over 4,400 trading sessions would result in a portfolio valued at VND 1.76 billion, achieving a remarkable 1,158% return on investment.
Hoà Phát Agriculture Files for IPO, Anticipated HOSE Listing in December
Hòa Phát’s subsidiary plans to offer up to 30 million shares, priced at no less than 11,887 VND per share. The capital raised will fund production expansion and the development of its farm system.
“Hoà Phát’s Profit Forecast for H2 2025: A Bullish Outlook with Expected 42% Growth”
SSI maintains a positive outlook for HPG’s net profit growth for the second half of 2025 and full-year 2026, projecting increases of 42% and 29%, respectively, compared to the same periods last year. This optimistic forecast is attributed to the contribution of the new capacity from the Dung Quat 2 plant, as well as improved prospects for steel prices.
The Ultimate Guide to Energy Efficiency: Vacuums vs. Robot Vacuums for a Sparkling Clean Home.
In a world where energy costs are a growing concern, the innovative combination of robots and vacuum cleaners offers a compelling solution. This dynamic duo promises to revolutionize the way we clean our homes, delivering optimized energy expenditure and unparalleled cleaning efficiency. With their advanced technology and meticulous design, they ensure a spotless environment without breaking the bank.
The Billionaire’s $3.7 Billion Project: A Joyful Announcement
The project utilizes cutting-edge technology from renowned European and G7 partners, offering unparalleled expertise and innovation.
