Hoa Sen Group (HSG) 9-month profit hits 568B VND, exceeds full-year target by 14%

Overview

Hoa Sen Group (HSG) has released estimated consolidated business results for the third quarter and first nine months of fiscal year 2025-2026 (October 1, 2025 to June 30, 2026). The company achieved a consolidated after-tax profit of 568 billion VND, surpassing its full-year profit plan by 14% after only three quarters. The strong performance was driven by robust domestic demand and a solid Q3 contribution.

Key Facts

• Consolidated after-tax profit for 9M FY2025-2026: 568 billion VND, 114% of the annual plan (Plan 1 approved by shareholders).
• Consolidated revenue for 9M: 27,358 billion VND, 78% of the annual target.
• Consolidated output for 9M: 1,319,545 tonnes, 75% of the annual plan.
• Q3 FY2025-2026 alone: output 461,739 tonnes, net revenue ~10,000 billion VND, after-tax profit ~382 billion VND.
• Book value per share after a 30% stock dividend paid in May 2026: approximately 14,700 VND.
• HSG operates 9 factories and a network of over 400 branches and stores nationwide.

What Happened

Hoa Sen Group (HSG) announced estimated consolidated financial results for the third quarter and first nine months of fiscal year 2025-2026. The company reported that after three quarters, consolidated after-tax profit reached 568 billion VND, exceeding the full-year profit target set under Plan 1 by 14%. Consolidated revenue for the period was 27,358 billion VND, achieving 78% of the annual plan, while output reached 1,319,545 tonnes, or 75% of the target.

The third quarter was a key contributor, with output of 461,739 tonnes, net revenue of approximately 10,000 billion VND, and after-tax profit of about 382 billion VND. The company attributed the strong performance to continued domestic market growth, supported by accelerated public investment, recovering construction demand, and the advantages of its extensive production and distribution network.

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 on HOSE. The steel sector has faced headwinds from global trade protectionism and input cost volatility, but HSG’s ability to exceed its annual profit target early suggests resilient domestic demand and effective cost management. The company’s focus on the domestic market and its retail chain Hoa Sen Home may provide a buffer against export uncertainties.

Strategic Significance

HSG’s early achievement of its annual profit target underscores the strength of its domestic-focused strategy and the effectiveness of its vertically integrated model from production to retail. The company’s investment in the Hoa Sen Home retail chain, aiming to become Vietnam’s leading building materials and furniture retailer, positions it to capture long-term growth from infrastructure spending and housing recovery. The strong balance sheet, reflected in a book value of 14,700 VND per share after a 30% stock dividend, provides financial flexibility for expansion and shareholder returns.

What to Watch

• Q4 FY2025-2026 results (due October 2026) to see if full-year profit can exceed the already-beaten target.
• Progress of Hoa Sen Home retail expansion and its contribution to revenue and margins.
• Steel price trends and input costs (e.g., hot-rolled coil) that could impact profitability.
• Trade policy developments, especially anti-dumping measures in key export markets.
• Any updates on the company’s dividend policy or capital allocation plans for the next fiscal year.