Hoa Phat Group JSC (HPG : HOSE)

Hoa Phat Group Joint Stock Company (HPG) is a Vietnam-based industrial conglomerate. HPG was founded in 1992 as a construction machine trading company. It started producing steel in 2002 when it launched its first steel mill, which had 250,000 tonnes/year capacity.

HPG was listed on the Ho Chi Minh Stock Exchange in 2007 and still derives about 20% of its revenues and earnings from its legacy, non-steel businesses.

HPG splits its businesses into three divisions:

  1. Steel (construction steel, steel pipes, energy & mining) — HPG’s construction steel products include reinforcing bar (aka “rebar”) as well as steel wire, rods, and sections. Rebar and steel wire are used to support concrete construction while steel sections are used to fasten steel sheets and beams in buildings, bridges, etc. Hoa Phat has 1.15m tonnes/year of construction steel capacity, including 0.85m tonnes of capacity at its new blast furnace steel mill which employs state-of-the-art basic oxygen furnace (BOF) technology. The rest of HPG’s steel is produced by recycling steel scrap with electric arc furnace (EAF) technology, which is how most construction steel in Vietnam is produced.
  2. Industrial products (furniture, construction & mining machinery, air conditioning and refrigeration) — This segment comprises office furniture, air conditioners and the distribution of construction machinery. HPG holds a leading market position in office furniture and its Funiki brand of air conditioners is also well-known.
  3. Real estate development — HPG has two industrial parks with the total area of 520ha. HPG is expanding these parks to 900ha. Its industrial parks are located close the Hai Phong port, the Hanoi-Hai Phong railway and the Hanoi International Airport. HPG also has one active residential real estate project in Hanoi, The “Mandarin Garden” development. This consists of four condominium blocks and is nearly completed. 90% of the units have been sold. HPG previously planned to develop more residential real estate projects but abandoned those plans following the deflation of Vietnam’s real estate bubble.

Pho Noi A Industrial Zone, Giai Pham commune, Yen My district, Hung Yen Province
Phone: +84 (4) 628-48666
Fax: +84 (4) 628-33456

Web Address:

ProspectusHPG : Hoa Phat Group Prospectus.

HPG26Nov07 : “A conglomerate in the making”, JP Morgan Securities, 26 Nov 2007.

HPGMar2008 : Company Report, Saigon Securities Inc., Mar 2008.

HPG16Jul08 : “Diversified, yet strong”, Mekong Securities, 16 Jul 2008.

HPG30Jul09 : Company Report, BaoViet Securities, 30 Jul 2009.

HPG1Oct09 : Company Update, VietCapital Securities, 1 Oct 2009.

HPG30Jul10 : Equity Report, Thang Long Securities, 30 Jul 2010.

HPG6Sep10 : Visit Note, VietCapital Securities, 6 Sep 2010.

HPG28Sep10 : Company Report, Sacombank Securities, 28 Sep 2010.

HPG16Feb11 : “Long term growth outweigh short term concerns”, VietCapital Securities 16 Feb 2011.

HPG17Mar11 : Visit Note, BaoViet Securities, 17 Mar 2011.

HPG1Dec11 : “Disappointing 3Q2011″, Sacombank Securities, 1 Dec 2011.

HPG5Mar12 : “Still quite cheap”, HCMC Securities, 5 Mar 2012.

HPG20Jul12 : “Vietnam’s most profitable steel maker”, Kim Eng Securities Initiate Coverage, 20 Jul 2012.

HPG30Aug12 : “Value stock under bear cycle pressure”, VietCapital Securities, 30 Aug 2012.

HPG19Sep12 : “Bottomline hit by margin compression”, Kim Eng Securities, 19 Sep 2012.

HPG7Nov12 : “Upgrading FY12 forecasts”, Kim Eng Securities, 7 Nov 2012.

HPG12Apr13 : “Sanguine FY2013 Outlook”, Kim Eng Securities, 12 Apr 2013.

HPG4Jul13 : “Buy on price weakness”, Saigon Securities, 4 Jul 2013.

HPG3Sep13 : Valuation Report, FPT Securities, 3 Sep 2013.

HPG14Oct13 : “Reverse provision of bad receivable from ACB Hanoi” BaoViet Securities, 14 Oct 2013.

HPG18Oct13 : “Most profitable, undervalued”, VietCapital Securities, 18 Oct 2013.

HPG1Nov13 : “Spotlight in steel industry”, Phu Hung Securities, 1 Nov 2013.

HPG21Nov13 : “A new chapter”, RongViet Securities, 21 Nov 2013.

HPG4Dec13 : “Market share gains at expense of ASPs”, VietCapital Securities, 4 Dec 2013.

HPG27Dec13 : “Leader of construction steel”, BIDV Securities, 27 Dec 2013.

HPG8Jan14 : “Sales volume leader in the steel industry”, BaoViet Securities, 8 Jan 2014.

HPG28Feb14 : “Solid earnings to bolster growth”, Saigon Securities, 28 Feb 2014.

HPG17Mar14 : “Opportunity to buy when ETF sells”, Saigon Securities, 17 Mar 2014.

HPG31Mar14 : “Promising 2014 earnings”, Saigon Securities, 31 Mar 2014.

HPG24Apr14 : “Sustainable development”, RongViet Securities, 24 Apr 2014.

HPG30May14 : “Vietnam’s best steel producer”, CIMB Bank, 30 May 2014.

HPG2Jun14 : “A favourable start”, Phu Hung Securities, 2 Jun 2014.

HPG6Jun14 : “More optimistic about Q2/2014 prospects”, BaoViet Securities, 6 Jun 2014.

HPG26Jun14 : Valuation Update, FPT Securities, 26 Jun 2014.


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