The Hanoitimes - The move came shortly after Hoa Phat announced its business plan for 2019, in which the group’s after-tax profit target was revised down by 22% year-on-year to VND6.7 trillion (US$288.74 million).
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).
After completing the transaction, Dragon Capital now owns 106.08 million shares of Hoa Phat, equivalent to a 4.98% stake.
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.