HPG Stock has been attracting the attention of investors in the Vietnamese stock market. Many forecasts assess that it will have positive developments in 2024. Here are some factors and predictions about the development of Hoa Phat (HPG) shares next year.
1. Introduction to HPG stock
Stock code HPG is issued by Hoa Phat Group Joint Stock Company. Hoa Phat Group Joint Stock Company started as a company specializing in selling construction machinery, established in August 1992.
After many years of development, Hoa Phat has become a leading manufacturing enterprise in Vietnam, not only operating in the field of trading construction machinery but also expanding into many other fields such as Production and trading of iron and steel, Furniture, Refrigeration, Agriculture, Real Estate, and many other fields.
According to the 2023 year-end report, Hoa Phat announced that the consumption of construction steel and steel billets in November reached 709,000 tons, the highest since April 2022. This shows a strong recovery of the steel market, especially in the construction industry. Construction steel consumption increased by 62.7% over the same period and 20.9% over the previous month, reaching 410,000 tons, while the company's operating capacity reached nearly 100%.
Hoa Phat's revenue in 2024 is expected to reach VND145,100 billion, an increase of VND231 billion, and net profit will reach VND11,000 billion, an increase of VND941 billion compared to 2023. Hoa Phat's construction steel and HRC consumption output is forecast to continue to increase, estimated at 4.24 million tons and 2.9 million tons, respectively, in 2024, while after-tax profit is expected to increase by VND82.31 billion. This reflects Hoa Phat's flexible strategy and innovation in management and production, while increasing the value of HPG shares in the eyes of investors.
Hoa Phat Group's revenue forecast for 2024 is VND 145,100 billion, an increase of VND 231,300 billion compared to 2023.
2. Factors that will help Hoa Phat shares increase in 2024
In 2024, Hoa Phat Group is expected to recover strongly, mainly due to the improvement of domestic market demand. The growth in demand from the real estate market in tier 1 cities began to recover in the fourth quarter of 2023, and real estate projects are expected to increase strongly in 2024. This will simultaneously stimulate the construction process and increase the demand for raw materials.
Steel prices are expected to recover to VND15.3 million/ton, nearly equal to the transaction price in the first half of 2023. For the hot-rolled coil (HRC) market, Hoa Phat Group expects the entire year 2024 consumption output to reach 2.9 million tons, an increase of 4% compared to 2023, mainly from the export channel.
At the Dung Quat Iron and Steel Complex, Hoa Phat has been operating at full capacity, putting phase 02 of the Complex into operation (expected in 2025) which will increase the total HRC production capacity from the current 3 million tons to 6 million tons. This will support HRC consumption in the medium and long term, which can create positive momentum for the company's revenue and profit, while increasing the value of HPG shares on the market.
However, Hoa Phat Group's policy of fixing raw material prices 1-2 months before importing goods may create cost pressure in the first quarter of 2024, especially when raw material prices have increased sharply since September 2023, while steel prices have not increased accordingly. Coking coal prices and iron ore prices have increased by an average of 20% and 9%, respectively, compared to the third quarter of 2023 in the fourth quarter of 2023.
The Hoa Phat brand value factor is also a factor that helps Hoa Phat HPG shares price increase in 2024. HPG has built a strong brand in the steel manufacturing sector. The prestige and quality of its products can help HPG maintain and increase its brand value, making the stock attractive to investors.
3. Summary and advice on investing in Hoa Phat stocks in 2024
Summing up 2023 and assessing the prospects for 2024, HPG shares prove to be one of the notable choices in the Vietnamese stock market. With plans to expand production, increasing demand for steel both domestically and internationally, and solid brand value, HPG has the potential for profit growth in 2024.
However, investors also need to be aware of risks that could affect this stock, including fluctuations in raw material prices, export markets, and the global economic situation.
Investment advice HPG stock 2024 is the year to be cautious and carefully evaluate market factors. It is important to monitor economic, political information and market fluctuations. At the same time, clearly define the investment strategy, as well as set a reasonable level of risk. For investors who intend to invest for the long term, closely monitoring the situation of the company and the industry will help them make informed and strategic investment decisions.
Source: Onstocks
