Hoa Phat (HPG) Q3/2026: Profit VND 8,265B, Up 106% YoY, Beats Full-Year Target

Overview

Hoa Phat Group (HOSE: HPG) reported Q3/2026 after-tax profit of VND 8,265 billion, up 106% year on year, on revenue of VND 62,669 billion (+70% YoY). Nine-month profit of VND 23,746 billion already exceeds 108% of the company’s full-year 2026 target of VND 22,000 billion, a result driven by record hot-rolled coil (HRC) volumes at the Dung Quất complex.

Key Facts

• Q3/2026 revenue: VND 62,669 billion, +70% versus Q3/2025.
• Q3/2026 after-tax profit: VND 8,265 billion, +106% year on year.
• Nine-month 2026 revenue: VND 171,539 billion (+54%); after-tax profit: VND 23,746 billion (+104%).
• Full-year 2026 plan: VND 210,000 billion revenue and VND 22,000 billion after-tax profit; nine-month completion stands at 82% and 108% respectively.
• Q3/2026 crude steel output: 3.7 million tonnes, +3% QoQ and +85% YoY; steel sales of 3.8 million tonnes, +8% QoQ and +54% YoY.
• HRC sales exceeded 2 million tonnes in Q3 (+8% QoQ, +64% YoY); nine-month HRC reached 5.47 million tonnes (+59%), over half of total steel sales.
• Steel accounted for 97% of revenue and 77% of profit; the group paid VND 12,038 billion to the state budget across 20 provinces and cities in nine months.

What Happened

Hoa Phat Group published its Q3/2026 business results, showing revenue of VND 62,669 billion and after-tax profit of VND 8,265 billion, increases of 70% and 106% respectively over the same quarter of 2025. For the nine months to September, revenue reached VND 171,539 billion (+54%) and after-tax profit VND 23,746 billion (+104%). Against the 2026 plan of VND 210,000 billion in revenue and VND 22,000 billion in after-tax profit, the group has completed 82% of its revenue target and 108% of its profit target.

The steel segment remains the core earnings engine, contributing 97% of revenue and 77% of profit. Crude steel output in Q3 reached 3.7 million tonnes, up 85% year on year, while sales of construction steel, high-quality coil, HRC and billet totalled 3.8 million tonnes (+54% YoY). HRC was the largest single product line at over 2 million tonnes in the quarter. Downstream, steel pipe output reached 681,000 tonnes (+9%), prestressed steel over 192,000 tonnes (+66%) and coated sheet just over 307,000 tonnes (-4%). Agriculture remained the second-largest contributor, with 365,000 pigs sold and more than 274,000 tonnes of animal feed produced in the quarter. The results were disclosed in the company’s quarterly business update; the article does not break out net profit attributable to parent shareholders versus minority interests.

Market Context

HPG closed at VND 20,750 on 28 October 2026 on the Ho Chi Minh City Stock Exchange (HOSE). The stock sits in the Basic Resources sector, where Hoa Phat is the dominant domestic name and Southeast Asia’s largest steel producer by capacity at roughly 16 million tonnes per year. The nine-month result confirms an earnings upcycle for Vietnamese steel, with HRC volumes scaling at Dung Quất and construction demand recovering; the profit beat arrives with the shares trading near the VND 20,000-21,000 band, so the print tests whether the market re-rates the stock on forward earnings rather than trailing steel spreads.

Strategic Significance

The investment case now rests less on cyclical margin recovery and more on volume and product mix. HRC at 5.47 million tonnes in nine months, up 59%, shows Dung Quất running close to design capacity and displacing imported coil in the domestic market, which supports pricing power and fixed-cost absorption. The VND 700,000-tonne-per-year railway rail and special steel plant at Dung Quất, 80% complete and due to supply the market from Q2/2027, is the next leg: it moves Hoa Phat into a higher-value segment tied to national rail infrastructure spending. Beating the full-year profit plan by September also raises the probability of an upward revision to the 2026 target and informs the 2027 plan, which is the key input for valuation.

What to Watch

• Any formal upward revision to the 2026 profit plan or early disclosure of 2027 targets.
• Q4/2026 HRC and construction steel sales volumes, and whether HRC can hold above 2 million tonnes per quarter.
• Progress and commissioning schedule for the Dung Quất rail and special steel plant ahead of Q2/2027.
• Domestic HRC price spreads and any changes to steel import duties or trade-remedy measures.
• Foreign-ownership and block-trade filings on HOSE following the results.