Hoa Phat (HPG) Q1 Net Profit Surges 9.1 Trillion VND, Chairman Eyes Red River Project

Overview

Hoa Phat Group (HPG) reported strong Q1 2026 results with net profit of 9.085 trillion VND and revenue of 53.3 trillion VND, beating market expectations. Chairman Tran Dinh Long expressed confidence in achieving the full-year 2026 targets of 210 trillion VND in revenue and 22 trillion VND in net profit. The company also provided updates on strategic projects, including a rail steel plant and participation in the Red River landscape boulevard development.

Key Facts

• Q1 2026 revenue: 53.3 trillion VND (up 53.3% YoY)
• Q1 2026 net profit: 9.085 trillion VND (up 9.1% YoY)
• Full-year 2026 revenue target: 210 trillion VND
• Full-year 2026 net profit target: 22 trillion VND
• Rail steel plant: first product targeted for 2027; plant also produces 500,000 tons of structural steel and angle steel
• HPG is participating in the Red River landscape boulevard project as part of a joint venture with partners
• Chairman Tran Dinh Long stated the company is “living with” competition from Chinese steel and has “lost the nerve to fear”

What Happened

At the annual general meeting on April 21, 2026, Hoa Phat Group Chairman Tran Dinh Long presented Q1 2026 results, calling them “good” with revenue of 53.3 trillion VND and net profit of 9.085 trillion VND. He expressed confidence in achieving the 2026 targets of 210 trillion VND in revenue and 22 trillion VND in net profit, while noting the company maintains risk contingency plans.

Addressing shareholder concerns about the rail steel project, Long confirmed the plant is under construction with workers “fully focused” to deliver the first product by 2027. He emphasized that HPG’s strategy is to sell diversified products; if rail sales are slow, the company can sell structural steel and angle steel (500,000 tons capacity). Regarding Chinese steel competition, Long said HPG is “living with” the competitive environment and has “lost the nerve to fear” long ago.

Market Context

HPG shares closed at 28,000 VND on April 15, 2026, down 1.75% with volume of 27.5 million shares. The stock trades on HOSE in the Basic Resources sector. HPG’s Q1 results come amid a challenging environment for Vietnamese steelmakers due to cheap Chinese imports and global demand uncertainty. However, the company’s strong performance and diversified product base provide a buffer.

Strategic Significance

HPG’s participation in the Red River landscape boulevard project marks a significant expansion into large-scale urban real estate. Chairman Long described it as a “100-year vision” project that could transform Hanoi’s riverfront into a tourist destination with theme parks and international-standard landscaping. The project is being pursued via a joint venture, consistent with HPG’s stated cautious approach to real estate investment. This move diversifies HPG’s revenue streams beyond steel and could unlock long-term value, though execution risks remain.

What to Watch

• Q2 2026 earnings release (expected July 2026) to confirm momentum
• Progress on rail steel plant: first product milestone in 2027
• Updates on Red River project: land acquisition, partner details, and regulatory approvals
• Steel price trends and import competition from China
• HPG’s ability to maintain margins amid rising input costs