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Hoa Phat Group (HPG VN) – H1 2026 Earnings – HRC Volume Surges as Dung Quat 2 Ramps Up
Summary of H1 2026 results and outlook of Hoa Phat Group JSC (HPG VN)
- Vietnam’s steel producers delivered a solid performance, with total sales volume rising 14.2% y/y to 18.0mn tons, supported by robust domestic demand and tighter import supply following broader trade measures on HRC. Demand was underpinned by strong public infrastructure investment, a larger pipeline of residential projects entering the construction phase and increased FDI-driven factory construction. On the supply side, the temporary anti-circumvention tariff on wide-width Chinese HRC imposed in April, followed by the official duty scheduled to take effect on 12 August, further strengthened the competitive position of domestic producers. As a result, HRC sales accelerated in Q2/2026, lifting H1 volume to 6.1mn tons (+52.3% y/y).
- HPG posted net revenue of VND108.1tn (+47.0% y/y), of which the steel segment accounted for 96.5% of total sales. Total steel sales volume increased 29.3% y/y to 7.2mn tons, led by HRC at 3.4mn tons (+56.6% y/y). Comprehensive trade measures enabled HPG to capture demand displaced from imports, supporting the ramp-up of DQSC 2 to a 90% utilization rate in June. Growth was also broad-based across other product categories, with construction steel and steel pipe sales volumes reaching 2.7mn tons (+11.0% y/y) and 453,000 tons (+12.7% y/y), respectively. Strong domestic demand and reduced import competition supported higher selling prices, enabling HPG to pass on rising raw material costs and expand gross profit margin to 17.4% from 16.3% a year earlier. Net financial income rose to VND2.8tn, including a VND4.9tn one-off gain from the transfer of its stake in a residential real estate project in Hung Yen. Overall, net profit increased 102.2% y/y to VND15.4tn, while core earnings excluding the divestment gain rose 50.4% y/y to VND11.4tn.
- For H2/2026, the current demand-supply dynamics should continue to support both sales volume growth and selling prices. Total sales volume is estimated at 8.1mn tons (+28.5% y/y), while average rebar and HRC selling prices are expected to increase 9.0% and 10.2% y/y, respectively. On the cost side, iron ore and coking coal prices are expected to ease toward year-end, as global supply remains ample and steel demand in China stays persistently weak. Together, these developments should support an improvement in profit margins compared with last year.
Read our previous analysis on HPG’s quarterly earnings.
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Featured image credit: https://www.hoaphat.com.vn/
