According to the September market strategy report, SSI Securities Company predicts that the profit of Hoa Phat Group (HPG) will continue to grow strongly in the second half of 2025 and 2026. The after-tax profit for the second half of 2025 is expected to increase by 42% and 29% for 2026, driven by new capacity from Dung Quat 2 plant and favorable steel price prospects. Dung Quat 2 is expected to come online by late Q3 2025, boosting HPG’s crude steel production capacity to 15 million tons/year. The company has completed testing the second blast furnace and is preparing for official operation. Notably, Hoa Phat has raised the selling price of HRC by about 5% since the beginning of the year, which will broaden profit margins in Q3 2025. Hoa Phat is pursuing a monopoly in producing a type of steel, enhancing its competitiveness and replacing imported products in Vietnam.
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