Hoa Phat Group’s president Tran Dinh Long has recently seen his assets increase sharply thanks to the recovery of HPG share prices. The pockets of the steel billionaire may increase twofold to $5 billion if profit increases are realized.

According to Forbes, as of February 24, Long’s assets had reached $2.4 billion, twice as much as November 2022.

His asset value has soared as the HPG share prices were escalating recently, from VND22,800 per share in late October 2023 to VND29,000.

Prior to that, HPG prices dropped to VND11,000 per share, causing Long’s assets to decrease to $1.2 billion, according to Forbes. This was the darkest moment of the steel manufacturer, attributed to the gloomy real estate market and the coal price increase, and the dollar price hike.

In the last two weeks of the New Year of the Dragon, HPG share prices rose sharply, hitting a 21-month peak amid steel sales and steel price increases. The steel demand in Vietnam and the world has recovered significantly, though it is still weak.

Steel manufacturers are expected to get benefits from the implementation of a series of infrastructure projects, including Long Thanh Airport, highways and belt roads in Hanoi and HCM City.

Hoa Phat has been recovering considerably, though its profit is still not high. The revenue has risen and market share has expanded, which has helped cements its position as the No1 steel manufacturer in Vietnam.

Hoa Phat reported revenue of VND35 trillion in the fourth quarter 2023, up 23 percent over the same period last year. The consolidated revenue of the entire year was VND120 trillion, or 16 percent lower than the year before.

With the capacity of 8.5 million tons of raw steel per annum, Hoa Phat is the largest manufacturer in Vietnam and Southeast Asia.

Though the steel manufacturer is still on the path of recovery and its profit is still lower than 2021, HPG shares have attracted a strong cash flow from foreign investors, domestic institutions and individuals. This is in contrast to foreigners’ strong sales in 2022 and the first half 2023.

The number of Hoa Phat’s shareholder has increased by tens of thousands each year, to 180,000 now. This is the enterprise with the highest number of shareholders in the stock market. 

Analysts commented that Hoa Phat gained investors’ confidence because of efforts by the leadership and Long to keep the production and performance transparent.

Investors now hope for a new growth cycle thanks to Dung Quat 2 super-project. They believe that the profit may double as predicted by Long.

If this happens, HPG share prices would soar and Long’s assets would increase by twofold to $5 billion. If so, Long may oust Vingroup’s president Pham Nhat Vuong to become the richest billionaire in the stock market.

An SSI Research report recently predicted a shortage of steel, which, plus the increase in exports, will help Hoa Phat develop the HRC (hot rolled coil) sector in the years to come, once Dung Quat 2 becomes operational.

The report said steel demand would recover in 2024 and see a 6 percent growth rate over the previous year.

In 2024, the loosened monetary policy will be an important factor to help the real estate market recover. A large amount of people’s deposits at banks, due this year, will be injected into investment channels. Real estate is always a priority investment channel.

The approval of three laws related to real estate will help warm up the property market.

Meanwhile, the World Steel Association predicted that global steel demand would increase by 1.9 percent in 2024. The steel price is predicted to rise because China plans to cut exports, which will benefit large Vietnamese steel manufacturers like Hoa Phat.

As for the $3 billion Dung Quat 2 project, 45 percent of the workload has been implemented. Once completed, Hoa Phat’s production capacity would reach 14 million tons a year and the company would be among the top 30 largest steel manufacturers in the world by 2025.

This will give a push to the Hoa Phat development. Long said at the 2023 shareholders’ meeting that by early 2024, when Dung Quat 2 becomes operational, Hoa Phat’s revenue would rise by VND80-100 trillion.

Manh Ha