A group of investment funds managed by Dragon Capital have offloaded 500,000 shares of Vietnam’s major steelmaker Hoa Phat Group, effectively ending its status as a major shareholder of the Vietnamese group, according to the Ho Chi Minh City Stock Exchange (HoSE).
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The move came shortly after Hoa Phat announced its business plan for 2019, in which the group targets revenue of VND70 trillion (US$3.01 billion), up 25% year-on-year and after-tax profit of VND6.7 trillion (US$288.74 million), down 22% year-on-year.
A more cautious approach in Hoa Phat business plan was partly due to a potential decrease in steel price in 2019 and China’s removal of export tariff on steel billet, starting January 2019, to facilitate exports.
Nevertheless, a decline in the profit target has caused negative responses from investors in the stock market. Shares of Hoa Phat have decreased by VND1,700 (US$0.07) to VND31,500 (US$1.36) per share.
In 2018, Hoa Phat set revenue target of VND55 trillion (US$2.36 billion) and after-tax profit VND8.05 trillion (US$346.86 million), which was reached within 11 months.
