- HPG released official Q2 2023 results that are consistent with the preliminary results announced on July 28, including revenue of VND29.5tn (USD1.2bn; +11% QoQ & -21% YoY) and NPAT of VND1.4tn (USD61.4mn; +267% QoQ, -64% YoY). 

- We attribute the QoQ improvement to 1) sales volume picking up in May and June — especially for hot-rolled coil (HRC), which was in line with our forecast — and 2) gross margin expansion (10.8% in Q2 2023 from 6.3% in Q1 2023) despite decreasing steel selling prices as high input material prices were already absorbed and reflected in Q4 2022 – Q1 2023 results.

- After rising 7% in Q1 2023 vs end-2022, HPG’s domestic construction steel experienced 12 price decrease events in Q2 2023, falling 12% compared to end Q1-2023 amid weak demand. HPG’s average domestic construction steel prices in H1 2023 declined 14% compared to H1 2022. The selling price of HRC, which is one of HPG’s key products, declined 35% YoY in H1 2023 as a result of weaker-than-expected demand from China and other developed markets.

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