HPG Q1 2026 Profit Soars 170% to VND 9T, Boosted by VND 3.8T Real Estate Deal

Overview

Hoa Phat Group (HPG) reported a 170% year-on-year surge in Q1 2026 net profit to over VND 9 trillion, significantly boosted by a VND 3.8 trillion gain from the transfer of its Phố Nối urban area project in Hung Yen. The transaction involves a $1.4 billion project that the steelmaker is exiting, allowing it to book a substantial one-time profit and refocus capital on its core industrial operations.

Key Facts

• Q1 2026 revenue reached over VND 53,500 billion, a 40% increase year-on-year.
• Q1 2026 net profit exceeded VND 9,056 billion, up 170% year-on-year.
• Profit from the transfer of the Phố Nối urban project in Hung Yen was VND 3,800 billion.
• Core business operations contributed over VND 5,200 billion to the quarterly net profit.
• The transferred project has a total registered investment capital of VND 35,000 billion (approximately $1.4 billion).
• The project spans over 262 hectares in Hung Yen province.
• The information was disclosed by Chairman Trần Đình Long at the company’s Annual General Meeting of Shareholders on April 21, 2026.

What Happened

At its Annual General Meeting of Shareholders on April 21, 2026, Hoa Phat Group Chairman Trần Đình Long announced the company’s Q1 2026 financial results. Revenue exceeded VND 53,500 billion, up 40% compared to the same period last year. Net profit after tax surpassed VND 9,056 billion, marking a 170% increase. A major component of this profit was a VND 3,800 billion gain from the transfer of the company’s Phố Nối urban area project in Hung Yen province to another entity.

The Phố Nối project, originally developed by Hoa Phat’s subsidiary Hoa Phat Urban Development and Construction JSC, is a large-scale urban development with a total registered investment capital now set at VND 35,000 billion (approximately $1.4 billion). According to the article, the project is currently being re-tendered. The company had previously incurred costs related to the project, with VND 1,747 billion recorded in work-in-progress costs as of December 31, 2025, per audited financial statements.

Market Context

HPG shares trade on the Ho Chi Minh City Stock Exchange (HoSE). The stock closed at VND 28,000 on April 15, 2026, down 1.75% for the session. As a major player in Vietnam’s basic resources sector, primarily steel production, HPG’s earnings are closely watched as a barometer for industrial and construction demand. This significant one-time profit from real estate divestment comes amid the company’s core steel operations also showing strong profitability of over VND 5,200 billion for the quarter.

Strategic Significance

The divestment aligns with a strategic shift for Hoa Phat, allowing it to monetize a large, capital-intensive non-core asset. The VND 3.8 trillion profit provides a substantial cash infusion that can be redeployed into its primary steel and manufacturing businesses, potentially for debt reduction, capacity expansion, or technological upgrades. This move sharpens the company’s focus on its industrial core, which continues to generate robust profits, and reduces exposure to the cyclical and regulatory complexities of the real estate development sector.

What to Watch

• The official Q1 2026 financial report filing with detailed segment breakdowns.
• Management commentary on the use of proceeds from the project transfer in upcoming investor communications.
• The outcome of the re-tendering process for the Phố Nối urban area project and the identity of the new investor.
• Q2 2026 earnings to assess the sustainability of core steel profitability without the one-time real estate gain.
• Any further announcements regarding divestment of other non-core real estate assets within Hoa Phat’s portfolio.