According to records from the financial statements of steel industry enterprises on the stock exchange, as of the end of June 2024, the total inventory value of steel enterprises is estimated at about 75,000 billion VND, down about 7,000 billion VND compared to the end of the previous quarter, but This number remains high.
Steel industry inventories decreased in the context of unfavorable world steel price trends, however, the amount of inventory at businesses is still quite high, this will create considerable pressure on steel industry businesses in the near future. next.
Of which, Hoa Phat Group Joint Stock Company (Code: HPG) alone accounted for more than 53% of the inventory value at the end of the second quarter of VND 40,163 billion (including provision for devaluation of VND 291 billion). Compared to the beginning of the year, inventory of "Steel King" Hoa Phat increased by 16.4%, however compared to the end of the first quarter of 2024, this number has decreased by 4.7%.
In the second quarter of 2024, Hoa Phat's consolidated net revenue reached 39,555 billion VND, a sharp increase of 34% over the same period last year. Gross profit margin this period improved from 10.8% to 13.2%. At the same time, financial costs during the period decreased by 21% to VND 1,065 billion. As a result, Hoa Phat reported profit after tax of VND 3,320 billion, 2.3 times higher than the same period last year. This is the highest profit of the business since the third quarter of 2022 until now.
Accumulated in the first 6 months of the year, Hoa Phat recorded 71,029 billion VND in revenue and 6,189 billion VND in profit after tax, up 25% and 3.3 times respectively over the same period. The company has completed more than half of its revenue target and about 62% of its yearly profit plan.
At Nam Kim Steel Joint Stock Company (Code: NKG), inventory as of the end of the second quarter of 2024 was at 5,743 billion VND, the company has made a provision for inventory devaluation of 130 billion VND. Compared to the beginning of the year, Nam Kim Steel's inventory did not fluctuate significantly, but compared to the end of the first quarter, this number decreased slightly by 1.5%.
In the second quarter of 2024, Nam Kim's consolidated net revenue reached 5,660 billion VND, up 2.9% over the same period last year. Financial activities during the period brought Nam Kim Steel more than 113 billion VND in revenue, double the same period last year.
Meanwhile, financial costs and business management costs both decreased significantly, down 44% and 19.7%, respectively, to 70 billion VND and 32.6 billion VND. As a result, Nam Kim reported a profit after tax of more than 219 billion VND, a sharp increase of 75% compared to the same period in 2023 and an increase of 46% compared to the first quarter of 2024.
Accumulated in the first 6 months of the year, Nam Kim recorded revenue of 10,951 billion VND, profit before tax of 460 billion VND and profit after tax of nearly 370 billion VND. With this result, Nam Kim Steel has completed 109% of its profit target after the first half of the year.
Vietnam Steel Corporation - Joint Stock Company (VNSteel, code: TVN) also recorded an inventory value of VND 4,984 billion. Compared to the beginning of the year, VNSteel's inventory increased by 23%, however compared to the end of the first quarter of 2024, this number has decreased by 8.2%.
In the second quarter of 2024, VNSteel's net revenue reached 10,076 billion VND, a sharp increase of 49% over the same period last year. After deducting the cost price, VNSteel's gross profit during the period reached 318 billion VND, 3.7 times higher than the same period last year.
During the period, financial revenue decreased sharply, while selling expenses and business management expenses both increased significantly, up 84% and 26% respectively. As a result, VNSteel reported a profit after tax in the second quarter of 130 billion VND, while in the same period last year the company lost 349 billion VND.
Accumulated in the first 6 months of the year, VNSteel's net revenue reached 17,590 billion VND, an increase of 16.6% over the same period last year. Profit after tax reached 175 billion VND, the same period last year the company lost 281 billion VND.
For Tien Len Steel Group Joint Stock Company (Code: TLH), as of the end of the second quarter, the business's inventory reached VND 2,567 billion, an increase of 6.4% compared to the beginning of the year, but this number has decreased by 6 .3% compared to the end of the previous quarter.
In the second quarter, Tien Len Steel's net revenue reached 1,634 billion VND, up nearly 33% over the same period last year. Cost of goods increased sharply by 42%, recording 1,700 billion VND. Operating below cost cost caused Tien Len Steel to have a gross loss of more than 66 billion VND while the same period last year had a profit of 38 billion VND.
The company also recorded a loss in joint venture and affiliated companies of up to 17 billion VND, and a profit of more than 300 million VND in the same period. As a result, Tien Len Steel reported an after-tax loss of more than 153 billion VND, and a profit of more than 5 billion VND in the same period last year. This is also the heaviest loss among steel industry enterprises this period.
In the first 6 months of the year, although net revenue increased slightly by 9% to 2,895 billion VND, Tien Len Steel still recorded a loss after tax of more than 152 billion VND.
