According to the first quarter financial report, Tien Len Steel Group Joint Stock Company achieved consolidated net revenue of nearly 979 billion VND and after-tax profit of more than 120 billion VND.
Similarly, at the end of the first 3 months of the year, Me Lin Steel Joint Stock Company recorded a 41-fold increase in profit after tax compared to the first quarter of 2020, reaching 15.5 billion VND.
The most surprising was Thai Nguyen Iron and Steel Joint Stock Company (TISCO).
Steel production at Hoa Sen Group.
Except for sales and corporate management expenses, which increased over the same period and deducted other losses of more than 3 billion VND, TISCO still reported a profit after tax of more than 44 billion in the first quarter of the year.
Business is profitable again thanks to positive market changes in prices, but the burdens and debts from the phase II expansion project still weigh heavily on TISCO’s finances.
Financial reports have not yet been released, but Hoa Phat’s sales output reached a record, promising impressive first-quarter business results.
Not only domestic groups, foreign enterprises producing steel in this field also reported large profits.
More positive developments in the epidemic help the steel export market gradually recover.
Scarcity of input materials for steel production (iron ore, coking coal, HRC hot rolled steel…) from China and India has pushed domestic steel prices to skyrocket.
However, the price of input materials for steel production increases too quickly, according to the research team of SSI Securities Company, which is also a risk for businesses producing this product after about 2-4 months of using up all the raw materials.
In the long term, SSI believes that domestic steel demand is supported by the recovery of the real estate market, FDI capital flows and public investment.