The business picture of a raft of building material makers, particularly steelmakers, is encouraging in Q1 of this year, with both revenue and profit figures steadily rising.

Major steelmaker Hoa Phat Group reaped $1.3 billion in revenue and $116 million in post-tax profit during the period, up 7-fold compared to a similar period in 2023.

In Q4 of 2023, the company eyed 33 per cent hike on-year in its revenue to reach $1.45 billion and counted $123.7 million in post-tax profit, up 249 per cent on-year.

Despite this rosy Q4 performance, for the whole year 2023, HPG still incurred a 16 per cent drop in full-year revenue falling to $5.01 billion, and 19 per cent dip in full-year post-tax profit shedding to $283.3 million, equal 85 per cent of full-year profit target.

Another top steelmaker Hoa Sen Group also wrapped up Q1 of this year counting $378 million in revenue, showing around 15 per cent jump on-year, and $4.3 million in post-tax profit compared to $28.3 losses one year ago.

Similarly, Nam Kim Steel eyed $220.4 million in Q1’s revenue, up 21 per cent on-year, and counted $6.25 million in post-tax profit compared to catching $2.05 million losses in the same period in 2023, with accrued profit margin rising from 3.1 per cent to 10.7 per cent.

Early this year, amid a challenging business environment, businesses had set up ambitious business plans.

For instance, Hoa Sen Group has set forth business targets with two scenarios. In the first scenario, it aims to reach 1,625 million in total consumption in 2024, up 13.3 per cent on-year, posting an estimated $1.42 billion in total revenue, up 7.4 per cent on-year, and reaping $16.7 million in full-year post-tax profit, equal 12.3-fold compared to execution level in the 2022-2023 season.

In the second scenario, it aims to reach 1.73 million tonnes in total consumption, up 20.7 per cent on-year, counting an estimated $1.5 billion in total revenue, up 13.7 per cent on-year, and $20.8 million in post-tax profit, equal 15.6-fold compared to 2022-2023 season.

Meanwhile, Hoa Phat Group has set its 2024 revenue target at $5.83 billion in total revenue and $417 million in post-tax profit.

Nguyen Viet Thanh, CEO of Hoa Phat Group, expects the steel sector to start energise in 2024 after falling to its bottom in 2023 and rebounding from 2025.

The company is set to raise its steel production output by more than 10 per cent this year in the hope that consumption could post a similar growth.

As for construction ceramics, top building material maker Viglacera aims to reach total consolidated revenue at $561 million, down 14.5 per cent compared to 2023 projection. In which, the parent company’s total revenue in 2024 is set at $208 million and pre-tax profit at $45.8 million, down 11.3 per cent and 16 per cent, respectively.

The Bien Hoa Buildings Materials Production and Construction JSC reflected a retreat in its 2024 business plan.

Along with this, the company aims to post $36.6 million in net revenue, down $3.3 million on-year, and $5.4 million in pre-tax profit, similar to 2023 level.

Nguyen Tuan Viet, director of VietGo Co., Ltd. which is specialised in import-export consultation and support said that despite challenging times, the opportunities to bolster export are remarkable as the world always has certain demands for building material items.

“Firms’ capacity to timely grasp opportunities is of paramount importance,” Viet said.