Pyn Elite Fund Boosts HPG Stake to 13.7%, Visits Hoa Phat's Dung Quat Steel Complex

Overview

Pyn Elite Fund, a major Finland-based investment fund with EUR 905 million in assets, has raised its allocation to Hoa Phat Group (HPG) to 13.7% of its portfolio as of April 2026. The fund’s representatives recently toured Hoa Phat’s Dung Quat steel complex, reinforcing its bullish stance on Vietnam’s largest steelmaker amid a domestic infrastructure boom.

Key Facts

• Pyn Elite Fund increased its HPG stake from 12.2% to 13.7% of its portfolio between March and April 2026.
• The fund’s total assets under management stood at EUR 905 million (over VND 28,000 billion, ~USD 1.06 billion) as of end-April 2026.
• In March 2026, the fund purchased an estimated 46 million HPG shares, raising its total holdings to over 123 million shares valued at approximately VND 3,300 billion.
• HPG is the second-largest holding in Pyn Elite Fund’s portfolio.
• The fund’s representatives visited Hoa Phat’s Dung Quat steel complex on May 8, 2026, including Blast Furnace No. 6 and the HRC2 rolling line.
• Vietnam’s public investment plan for 2026 exceeds VND 1,000 trillion, with major projects like the North-South high-speed railway expected to boost steel demand.
• Pyn Elite Fund’s year-to-date return as of end-April 2026 was -2.58%.

What Happened

On May 8, 2026, representatives of Pyn Elite Fund, led by fund manager Petri Deryng, visited the Hoa Phat Dung Quat steel complex in Quang Ngai province. They were received by Deputy Director Ho Duc Tho and other senior management. The delegation discussed production, sales, market expansion strategies, and challenges facing the steel industry.

According to the fund’s latest report, Pyn Elite Fund increased its HPG stake to 13.7% of its portfolio by end-April, up from 12.2% in March. The fund described the Vietnamese stock market as “irrational,” noting that positive corporate earnings have not been fully reflected in stock prices. It reiterated its high conviction in HPG, citing the government’s VND 1,000 trillion public investment plan and the North-South high-speed railway as key growth catalysts for the steel sector, with Hoa Phat positioned as a primary beneficiary due to its market leadership and expansion into specialized rail steel.

Market Context

HPG shares closed at VND 28,000 on April 15, 2026, down 1.75% on volume of 27.5 million shares. The stock trades on HOSE. Despite the recent price weakness, foreign investors like Pyn Elite Fund have been accumulating HPG, reflecting a divergence between near-term market sentiment and long-term fundamental expectations. The steel sector is closely tied to Vietnam’s infrastructure cycle, and HPG’s dominant market share (over 30% in construction steel and growing in HRC) makes it a bellwether for the industry.

Strategic Significance

Pyn Elite Fund’s continued stake increase signals sustained foreign institutional confidence in HPG’s ability to capitalize on Vietnam’s multi-year infrastructure buildout. The fund’s site visit suggests a hands-on approach to due diligence, focusing on operational efficiency and capacity expansion at Dung Quat, which is HPG’s largest integrated steel complex. HPG’s strategic pivot toward high-value steel products (e.g., for railways) aligns with government priorities, potentially insulating it from cyclical downturns in construction steel. The fund’s view that the market is “irrational” implies it sees current valuations as attractive relative to earnings potential.

What to Watch

• HPG’s Q2 2026 earnings release, expected in July, for evidence of margin improvement and volume growth.
• Progress of the North-South high-speed railway tender awards and HPG’s involvement in supplying rail steel.
• Further foreign ownership changes; HPG’s foreign room is currently not fully utilized, but sustained buying could push limits.
• Pyn Elite Fund’s monthly portfolio updates for any further HPG allocation changes.
• Steel import/export data and anti-dumping policy developments affecting the Vietnamese steel market.