Hoa Phat Group: Trading Below Its Five-Year Average

Hoa Phat Group (HOSE: HPG) trades at about 1.27x P/B, roughly 21% below its five-year average of 1.60x. Revenue is back above its 2021 level, but net profit remains about 55% below its 2021 peak, so production volume has recovered faster than margins.

Dung Quat 2, a VND 85 trillion project, adds 5.6 million tonnes of hot-rolled coil (HRC) capacity and lifts HPG’s total steel capacity to around 16 million tonnes.

The key question is whether margins will keep pace with higher production volume.

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