Despite a sharp decrease in sales revenue, the company managed to increase its gross profit and equity size.
Revenue from goods and services decreased by approximately 63% compared to the same period in 2024, from 108.4 billion VND (USD 4.11 billion) to 40 billion VND (USD 1.52 billion). This decrease is mainly attributed to fluctuations in steel prices, slowing domestic demand, and contraction in export channels.
Despite the decrease in sales, gross profit increased from 9.3 billion VND (USD 353 million) to 14.1 billion VND (USD 536 million), showing a strong recovery. The main reason for the profit increase was not operational performance improvement, but dividends from subsidiaries and returns from financial investments. This indicates that Hoa Phat maintained a strong financial position despite a slowdown in production volume.
The total value of inventories was 721 million VND (USD 27.4 million) on January 1, 2025, and reached 13.7 billion VND (USD 520 million) as of September 30, 2025.
Most of this increase was observed in the “ongoing projects” item, from 13.36 billion VND (USD 507 million), while limited increases were also noted in the materials and tools-equipment groups.
Total assets and equity increased significantly compared to the beginning of the year. This shows that Hoa Phat Group has maintained long-term financial resilience and a robust balance sheet against sector fluctuations.
Although cash flow from production decreased, the company’s strategy to maintain profitability through financial investments proved effective.
However, increasing inventories may create liquidity pressure if demand remains weak in the coming period.
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