The Hoa Sen Group's employee checking products in a warehouse. The company's profit after tax rose over 200 per cent year-on-year in Q1. (Photo: hoasengroup.vn) Rebar futures contracts, trading on the Shanghai Futures Exchange, increasedsharply due to supply chain disruptions caused by the COVID-19pandemic.
The most traded May rebar contract climbed 17.4 percent this year and traded at5,101 yuan per tonne. The rebar price rose 51 percent compared to April2020.
In its first quarter finance result, Hoa Sen Group (HSG) posted an increase ofnearly 382 percent year-on-year in net revenue to 9.1 trillion VND,leading to a rise of 215.8 percent in profit after tax to 572 billion VND.
HSG said that the gain was mainly driven by increases in net revenue and fallsin financial expenses, dropping nearly 30 per cent in the firstquarter.
Ho Chí Minh City Metal Corporation (HMC) also witnessed strong growth inbusiness results during this period with its revenue rising 40.4percent over the same period of 2020 to over 1.1 trillion VND.
The company's profit after tax gained over 10 times compared to last year to 64.7billion VND, marking the highest quarterly profit since it was founded.
In the financial report, HMC said that the main reasons for the company'soutstanding performance were gains in sales and higher steel price.
The company will hold its annual general meeting on April 26. In a reportprepared for the meeting, HMC set this year's target of 3.45 trillion VND inrevenue, down 5 percent year-on-year, with profit after tax increasing 16 percentto 44 billion VND.
Another steel producer posting good results in the first quarter was ThuDuc Steel JSC (TDS).
The quarterly financial report showed that the company's net revenue rose22.7 percent year-on-year to 601.6 billion VND. Its profit after tax alsoposted a gain of 45.5 percent to over 12.8 billion VND.
According to TDS, its steel consumption increased to over 1,760 tonnes in thelast quarter while the steel price continued to rally.
The sharply decline in financial expenses also supported TDS' businessresults. The fees slid nearly 76 percent year-on-year in the firstquarter.
In 2021, TDS is expected to reach 20 billion VND in profit before tax.
On the Ho Chí Minh Stock Exchange (HoSE), HSG and HMC closed higher on April 19,up 5.86 percent and 6.91 percent, respectively.
TDS, which trades on UPCOM, also opened the new week on a positive note.The TDS shares increased 14.62 percent to 24,300 VND./.
VNA
