Hoa Phat (HPG) Ships First Galvanized Coil Cargo to Japan as Q3 Profit Doubles

Overview

Ton Hoa Phat, the steel sheet arm of Hoa Phat Group (HPG, HOSE), completed its first export of about 8,000 tonnes of galvanized steel coil to Japan in Q4/2026, a market it had not previously supplied. The shipment coincides with Hoa Phat Group’s Q3/2026 results, which showed revenue of VND 62,669 billion (+70% year on year) and after-tax profit of VND 8,265 billion (+106%).

Key Facts

• Ton Hoa Phat exported approximately 8,000 tonnes of galvanized steel coil to Japan, its first shipment to that market, per the group’s announcement.
• The cargo meets Japan’s JIS G 3302 standard, including no-spangle surface requirements and Chromium 3+ or chromium-free surface treatment.
• JICQA (JIC Quality Assurance Ltd.) granted JIS certification to Ton Hoa Phat’s cold-rolled, galvanized, aluminium-zinc and colour-coated lines in early 2026.
• Ton Hoa Phat’s lines, imported from Europe, have a designed capacity of 600,000 tonnes per year.
• In the first nine months of 2026, Ton Hoa Phat sold 307,000 tonnes, with exports at 29.8% of total sales volume; products reach 29 countries and territories.
• Hoa Phat Group Q3/2026 revenue was VND 62,669 billion (+70% YoY) and after-tax profit VND 8,265 billion (+106% YoY).
• Nine-month 2026 revenue and profit were VND 171,539 billion and VND 23,746 billion (+54% and +104% respectively), equal to 82% of the revenue plan and 108% of the VND 22,000 billion profit target.

What Happened

Hoa Phat Group, chaired by Tran Dinh Long, disclosed the shipment through a company announcement. Ton Hoa Phat sent roughly 8,000 tonnes of galvanized steel coil to Japan in Q4/2026, describing it as a milestone in its international expansion strategy and a validation of product competitiveness in one of the world’s most demanding quality markets. The company said the coils meet JIS G 3302, with strict requirements on dimensions, no-spangle coating surface and Chromium 3+ or chromium-free treatment, and carry a Vietnamese certificate of origin (C/O) that helps buyers access applicable tariff preferences.

The export follows JIS certification from JICQA in early 2026 covering cold-rolled steel, galvanized sheet, aluminium-zinc coated sheet and colour-coated sheet. Ton Hoa Phat said it will push further exports of strategic product lines and expand cooperation with international partners. The group separately reported Q3/2026 revenue of VND 62,669 billion and after-tax profit of VND 8,265 billion, with steel contributing 97% of revenue and 77% of profit.

Market Context

HPG closed at VND 20,400 on 2 November 2026 on HOSE. The stock trades within the Basic Resources sector, where Hoa Phat is the dominant domestic steel producer by capacity. The Q3 result, with profit more than doubling year on year and nine-month earnings already above the full-year plan, reflects a recovery in steel demand and margins relative to the 2025 base. The Japan shipment is small in tonnage terms against group scale but adds a high-standard export channel to a product mix that already sells into 29 markets.

Strategic Significance

The Japan entry matters less for the 8,000-tonne volume than for what it certifies: JIS-qualified coated steel opens a market where Vietnamese exporters have historically had limited access, and it supports pricing and margin diversification away from domestic construction demand and trade-remedy exposure in other export markets. For long-term holders, the thesis rests on Hoa Phat moving up the value chain from construction-grade long steel into higher-margin flat and coated products, with export share at 29.8% of Ton Hoa Phat’s volume providing a buffer against domestic cyclicality. The Dung Quat complex underpins that scale, and the coated-sheet segment is where incremental export growth is being pursued.

What to Watch

• Q4/2026 and full-year 2026 results, to confirm whether the Japan channel scales beyond the initial 8,000-tonne cargo.
• Monthly and quarterly Ton Hoa Phat sales volumes and export share, currently 29.8% of nine-month volume.
• Further JIS or other international certifications and any additional Japanese or Northeast Asian offtake agreements.
• Domestic steel price and construction demand trends, given steel’s 97% contribution to group revenue.
• Any trade-remedy or tariff developments in Hoa Phat’s existing export markets across Europe, the Americas and Asia.