- HSG reported Q4 FY2022 (July 1 to September 30, 2022) revenue of VND7.9tn (USD324.0mn; -50% YoY & -35% QoQ) and a net loss of VND887bn (USD36.2mn) compared to VND941bn (USD38.4mn) of net profit in Q4 FY2021. We attribute these weak Q4 FY2022 results to a slowdown in demand in both domestic and export markets as well as an unfavorable trend in hot rolled coil (HRC) prices.

- HSG’s galvanized steel sheet and steel pipe sales volume dropped 44% YoY to 313,400 tonnes in Q4 FY2022. For FY2022, HSG’s galvanized steel sheet and steel pipe sales volume was 1.79 million tonnes (-21% YoY).

- HSG incurred a VND231bn (USD9.4mn) loss at the gross profit level in Q4 FY2022 that resulted from stagnant sales. Meanwhile, both input HRC and galvanized steel selling prices experienced a more than 30% correction following their YTD peak in April 2022. This market situation caused steelmakers to be trapped with high purchased input costs while subsequent sales were slow, resulting in a strong gross margin contraction.

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