Hoa Sen Group (HSG) Net Profit Surges 14% Above Target in 9 Months
This Aveluro analysis covers HSG (Hoa Sen) on HOSE in the Basic Resources sector. The classified event type is earnings beat, with positive sentiment and a deterministic market-impact score of 7.0/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from VnExpress - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Hoa Sen Group (HSG) reported net profit of 568 billion VND for the first nine months of fiscal year (October 2025 to June 2026), exceeding its cautious target by 14%. Revenue reached nearly 27,400 billion VND, completing 78% of the annual plan. The company’s average daily profit exceeded 2 billion VND.
Key Facts
- Net profit for 9 months: 568 billion VND, up 14% vs cautious target of 500 billion VND.
- Revenue for 9 months: nearly 27,400 billion VND, 78% of annual plan.
- Q3 revenue: 10,000 billion VND; Q3 net profit: 382 billion VND, both sharply higher YoY.
- Sales volume: over 1.3 million tons of finished products in 9 months.
- Book value per share: approximately 14,700 VND, about 30% above the current market price of 11,350 VND.
- Annual production capacity: 1.8-2 million tons, with ~1.1 million tons consumed domestically.
- The company has two business scenarios: cautious (revenue 35,000 billion VND, profit 500 billion VND) and optimistic (revenue 37,000 billion VND, profit 600 billion VND).
What Happened
Hoa Sen Group announced its quarterly results, reporting net profit of 382 billion VND for the quarter ended June 2026, a significant increase year-on-year. For the first nine months of fiscal year, net profit reached 568 billion VND, surpassing the cautious target set by shareholders. The company attributed the strong performance to robust domestic demand driven by accelerated public investment and recovering construction activity, as well as successful export market diversification to counter trade protectionism.
Management noted that higher working capital loan interest rates led to financial costs potentially doubling compared to the previous fiscal year, which prompted the company to adopt a cautious business plan. Chairman Le Phuoc Vu stated that steel remains the core business in the short term, but the company is pivoting toward a retail chain for construction materials and home furnishings (Hoa Sen Home), which is expected to generate several billion USD in revenue and higher margins in the coming years.
Market Context
HSG shares closed at 11,350 VND on July 12, 2026, down 1.30% on volume of 1.76 million shares. The stock trades at a discount of approximately 30% to book value per share of 14,700 VND. The steel sector has been supported by domestic trade protection measures and rising HRC prices, which increased 12-15% from the start of the year. HSG is listed on HOSE.
Strategic Significance
Hoa Sen’s earnings beat underscores the resilience of its core steel business amid a challenging interest rate environment. The company’s strategic shift toward a retail model (Hoa Sen Home) represents a long-term transformation aimed at reducing reliance on cyclical steel manufacturing. The retail chain, formally established this year after years of testing, targets higher margins and recurring revenue. If successful, this could re-rate HSG’s valuation multiple, which currently reflects only its steel operations.
What to Watch
- Q4 fiscal year results (ending September 2026) to see if profit momentum continues.
- Progress of Hoa Sen Home retail expansion and same-store sales data.
- Domestic HRC price trends and any changes in trade protection policies.
- Interest rate movements and their impact on HSG’s financial costs.
- Any updates on export market diversification, particularly in response to trade barriers.