Hoa Phat (HPG) Q1 2026 Net Profit Surges 170% to 9,055 Billion VND, Cash Hits 35.7 Trillion

Overview

Hoa Phat Group (HPG) reported a net profit of 9,055 billion VND for Q1 2026, a 170% increase year-on-year, with revenue up 40% to 53,313 billion VND. The strong performance was driven by the full operation of Dung Quat 2 steel complex and a one-time property transfer. Despite record interest costs of 1,333 billion VND, the company’s cash holdings surged to 35,700 billion VND, the highest in 11 quarters.

Key Facts

• Q1 2026 net profit: 9,055 billion VND, up 170% year-on-year (2.7x).
• Q1 2026 revenue: 53,313 billion VND, up 40% year-on-year.
• Interest costs hit a record 1,333 billion VND, equivalent to nearly 15 billion VND per day.
• Cash and short-term deposits reached 35,700 billion VND, the highest since Q3 2023, an increase of 8,000 billion VND in the quarter.
• Financial income surged 13.5x to 5,900 billion VND, mainly from the transfer of a real estate project in Pho Noi, Hung Yen.
• Hot-rolled coil (HRC) output reached 1.47 million tons, up 48% year-on-year.
• HPG achieved 25% of its 2026 revenue target (210,000 billion VND) and 41% of its net profit target (22,000 billion VND).

What Happened

According to its Q1 2026 consolidated financial statements, Hoa Phat Group (HPG) reported a net profit of 9,055 billion VND, up 2.7 times from the same period last year. Revenue reached 53,313 billion VND, a 40% increase, driven by the full operation of the Dung Quat 2 steel complex and a significant contribution from financial income. The company recorded financial income of 5,900 billion VND, up 13.5 times year-on-year, primarily from the transfer of a real estate project in Pho Noi, Hung Yen province.

Interest costs rose to a record 1,333 billion VND, nearly 15 billion VND per day, due to the cessation of capitalization after Dung Quat 2 became operational and elevated lending rates in Q1 2026. Despite this, cash holdings surged to 35,700 billion VND, the highest in 11 quarters, as the company began repaying loans for Dung Quat 2. Total borrowings stood at 90,617 billion VND, slightly down from 92,174 billion at end-2025.

Market Context

HPG shares closed at 28,000 VND on April 15, 2026, down 1.75% on the day with volume of 27.5 million shares. The stock trades on HOSE and has been under pressure from rising interest rates and concerns about debt levels. However, the strong Q1 earnings beat and cash buildup may alleviate some investor concerns. The steel sector in Vietnam has benefited from robust domestic demand and infrastructure spending.

Strategic Significance

The Q1 results demonstrate HPG’s ability to generate strong cash flow from its expanded Dung Quat 2 capacity, even as it enters a repayment cycle. The surge in cash holdings provides a buffer against high interest costs and positions the company for potential debt reduction or strategic investments. The property transfer highlights HPG’s ability to monetize non-core assets to boost earnings. The achievement of 41% of the full-year profit target in just one quarter suggests upside to guidance if steel demand remains strong.

What to Watch

• Q2 2026 earnings release to see if profit momentum continues.
• Steel price trends and HRC output volumes, especially export markets.
• Debt repayment schedule and interest cost trajectory.
• Any further asset sales or capital management actions.
• SBV policy on lending rates and credit growth for the steel sector.