(Financial Market) – The business landscape of the steel industry in Q2/2025 reflects a clear divergence among companies, amid uneven domestic market recovery and export challenges due to international trade barriers.
Hòa Phát Records Highest Quarterly Profit in 3 Years
Leading the industry in market share, Hòa Phát Group (HPG) reported Q2 revenue of VND 35,910 billion, down 9% compared to Q2/2024. However, net profit rose sharply by 28% to VND 4,265 billion – the highest since Q2/2022. This positive outcome was mainly due to an improved gross profit margin, increasing from 13.26% to 18.34%.
In the first six months of the year, Hòa Phát achieved revenue of VND 73,532 billion, up 4%, and net profit of VND 7,614 billion, up 23% year-on-year. With these results, the group has completed 51% of its annual profit target.
Vietnam Steel and Hoa Sen Maintain Profit Growth
Vietnam Steel Corporation (TVN) also reported positive results with consolidated Q2 revenue of VND 10,630 billion, up over 5% year-on-year. Net profit reached VND 268 billion, an increase of 39%, driven by improved gross margin from 3.1% to 5.2% and nearly doubled financial income, reaching VND 190 billion.
In the first six months, TVN recorded revenue of VND 20,660 billion and net profit of VND 369 billion, up 17% and 54% respectively compared to the same period last year.
Hoa Sen Group (HSG), despite a 12% decline in Q3 revenue of the 2024–2025 fiscal year (April 1 – June 30, 2025) to VND 9,509 billion, maintained net profit at VND 274 billion. This result was supported by a slight improvement in gross margin from 12.33% to 12.75%, increased financial income, and reduced selling expenses.
Cumulatively, in the first nine months of the fiscal year (October 1, 2024 – June 30, 2025), Hoa Sen achieved revenue of VND 28,182 billion, down 3.3%, and net profit of VND 647 billion, down 7% year-on-year but exceeding 29% of the high-end profit plan.
Coated Steel Companies Face Heavy Export Pressure
Companies specializing in coated steel recorded weaker results due to the new U.S. tax policies and trade defense measures.
Nam Kim Steel (NKG) reported Q2 revenue of VND 3,808 billion, down 33% year-on-year, and net profit fell 58% to VND 92 billion. In the first six months, revenue decreased 28% to VND 7,899 billion and net profit dropped 58% to VND 157 billion – equivalent to 44% of the annual plan.
Export revenue fell by over 50% to VND 3,680 billion. Although domestic revenue increased 21% to VND 4,248 billion, it was insufficient to offset the overall decline.
Dong A Steel (GDA) also faced difficulties, with Q2 revenue of VND 4,257 billion, down 29%, and net profit decreasing 49% to VND 88 billion. The main cause was a contraction in gross margin from 9.1% to 7.9%.
By the end of June 2025, Dong A Steel recorded revenue of VND 8,233 billion and net profit of VND 150 billion, down 18% and 44% year-on-year, respectively.
SMC Continues Losses; Small Enterprises Show Mixed Results
SMC Investment & Trading JSC (SMC) continued to post weak results, recording a loss of VND 43 billion in Q2/2025, extending an unstable performance after only slight profit in Q1. Gross profit was negative VND 47 billion, similar to Q2 of the previous year. Thanks to a strong increase in other income from asset liquidation, the loss was nearly halved compared to the previous year (loss of VND 90 billion).
In the first six months, SMC achieved VND 3,800 billion in revenue, down 15%, and net loss of VND 43 billion – in contrast to a profit of VND 89 billion in the same period of 2024.
Among small-scale companies, Thai Nguyen Iron & Steel (TIS) posted Q2 revenue of VND 3,399 billion, up 11%, and net profit nearly VND 14.5 billion – a positive turnaround from a loss of nearly VND 1 billion in the same period and Q1/2025.
Viet Duc Steel (VGS) also achieved notable results, with revenue up 7% to VND 2,120 billion and net profit nearly tripled to VND 35 billion. The improvement was driven by enhanced gross margin and a spike in financial income (VND 28 billion compared to less than VND 30 million in the same period last year).
In contrast, Thong Nhat Steel Sheet (TNS) suffered a sharp decline, with Q2 revenue of VND 288 billion, down nearly 70%, and net profit just over VND 3 billion, down 67% – the lowest level in the last six quarters. In the first six months, the company achieved revenue of VND 738 billion and net profit of nearly VND 12 billion, down 57% and 20% respectively.
The company stated that Q2 production and sales were negatively impacted by tax fluctuations and international trade defense measures, leading to a 44% drop in production and a 35% decrease in consumption compared to the same period, which correspondingly reduced revenue.
