- HPG released its official Q3 2023 results that are consistent with the preliminary results announced on October 27, including revenue of VND28.5tn (USD1.2bn; -3% QoQ & -16% YoY) and NPAT-MI of VND2.0tn (USD83.5mn; +37% QoQ, vs. VND1.8tn/USD73.9mn net loss in Q3 2022). 

- We attribute the QoQ improvement to 1) sales volume picking up throughout Q3 — especially for hot-rolled coil (HRC), which was in line with our forecast — and 2) gross margin continuing to expand (12.6% in Q3 2023 from 10.8% in Q2 2023) as declining input material prices help to compensate for decreasing steel selling prices. 

- However, HPG recorded VND176bn (USD7.3mn) net FX losses in Q3 2023 vs a total of VND28bn/USD1.2mn in H1 2023, which weighed on the company’s Q3 2023 earnings.

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