Hoa Phat stock gains outlook as steel earnings beat 2026 plan

Hoa Phat Group delivered a sharp improvement in operating performance in the third quarter of 2026, according to VietNamNet. The report, published on Friday, October 30, said revenue reached nearly VND 62.7 trillion and after-tax profit rose to VND 8.265 trillion, with profit more than doubling from the year-earlier quarter.

Profit growth clears annual target

For the first nine months, revenue exceeded VND 171.5 trillion, up 54% year over year, while after-tax profit increased 104% to more than VND 23.7 trillion. The company had therefore achieved 82% of its annual revenue target and 108% of its full-year profit target before the final quarter.

Production and sales volumes also strengthened. Hoa Phat produced 10.7 million tonnes of crude steel in the nine-month period, up 35%, while sales of construction steel, high-quality wire rod, hot-rolled coil and steel billets rose 39% to 10.3 million tonnes. Hot-rolled coil sales increased 59% to 5.47 million tonnes.

Public spending supports steel demand

Vietnam's public-investment plan for 2026 exceeds VND 1.07 quadrillion, according to figures cited by VietNamNet. Infrastructure projects such as expressways, airports, seaports and urban railways could lift demand for steel and other construction materials, although the timing of disbursement and project execution remains important.

Market conditions are also improving in parts of the domestic steel industry. MBS estimated third-quarter domestic steel consumption at 7.68 million tonnes, with construction steel consumption up 26% and hot-rolled coil demand up 35%. The same report said construction steel prices rose 7% year over year during the quarter.

Expansion adds longer-term potential

Vietcombank Securities pointed to Hoa Phat's large production scale, integrated value chain and additional capacity from the Dung Quat 2 steel complex. The company is also moving into higher-technology products, including rails and specialty steel for railway and metro projects.

Hoa Phat's business and peers

Hoa Phat is a Vietnam-based steel producer supplying construction steel, high-quality wire rod, hot-rolled coil and billets. Its operations are anchored by large integrated production facilities, including the Dung Quat complex, and its product base serves domestic construction and export markets.

Hoa Phat is described as Vietnam's leading steel producer, while Hoa Sen Group and Nam Kim Steel are named as peers in the same sector. Compared with those more specialized steel names, Hoa Phat's position rests on its broader integrated production base and expansion into higher-value products, according to VietNamNet and Upside.

Vietnam's public-investment cycle remains an important theme for construction-materials companies; see the Current market reports for broader market developments.