Hochiminh City Metal (HMC) Vnsteel - Hochiminh City Metal Corp: A Leading Steel Trader under Vietnam Steel Corporation (VNSTEEL)

Hochiminh City Metal (HMC, Vnsteel - Hochiminh City Metal Corporation, listed on HOSE) is a leading steel trading company under the Vietnam Steel Corporation (VNSTEEL). Based in Ho Chi Minh City, it acts as the "steel artery" supporting the construction and manufacturing industries in the south, deploying a trinity management model of distribution, processing, and logistics. Since 2025, the tightening of regulations on cheap Chinese steel, which had long plagued the industry, has marked a turning point where margins as a trading company are improving dramatically.
【This article is written based on public information as of April 9, 2026】

What are the three businesses handled by Hochiminh City Metal?

The main points covered in this chapter are as follows.

• Strategic distribution of steel products

• High value-added steel services

• Logistics and asset management

Strategic distribution of steel products

This is the core business that accounts for the majority of HMC's sales. It handles a wide range of products, centered on hot-rolled coils (HRC), as well as cold-rolled coils, steel pipes, and construction steel. Its greatest strength lies in its possession of priority supply channels for public infrastructure projects, backed by the "government-affiliated" credibility of being under the VNSTEEL umbrella. (Reference: marketscreener.com)

High value-added steel services

Rather than simple resale, the company provides precision slitting and cutting services tailored to customer specifications. This allows for the addition of profit through high value-added services, building strong and stable relationships with clients.

Logistics and asset management

The company owns large-scale warehouses in key locations around Ho Chi Minh City. By not only storing its own inventory but also leasing space to third parties, it secures stable revenue that is not swayed by steel market conditions. These unrealized gains on real estate serve as a "hidden backing" for the company's balance sheet.

Three key items for financial analysis

The main points covered in this chapter are as follows.

• Expansion of sales scale and acceleration of return to profitability

• Financial leverage and soundness as seen in the debt ratio

• Attractiveness of dividends

Expansion of sales scale and acceleration of return to profitability

In fiscal year 2025, sales reached approximately 5.76 trillion VND, recording strong year-on-year growth. Particularly noteworthy is the profit aspect, with a net profit of 1.7 billion VND recorded in the first half of 2025, an 85% increase compared to the same period the previous year. Improvements in inventory turnover and inventory valuation gains accompanying the market recovery are boosting earnings. (Reference: reuters.com)

Financial leverage and soundness as seen in the debt ratio

The current total debt is approximately 854 billion VND, with equity at about 415 billion VND, resulting in a debt-to-equity ratio of approximately 2.0x. Due to its business model as a trading company, short-term borrowing for procurement tends to be high, but this is at a relatively controlled level within the Vietnamese steel sector. While attention must be paid to the risk of rising interest rates, the ability to repay debt through cash flow is maintained.

Dividend Appeal

HMC shows a proactive stance toward shareholder returns, with cash dividends of 500 to 1,000 VND per share expected for the 2025 fiscal year. Based on the current stock price (approximately 11,700 to 11,900 VND), the dividend yield is around 5% to 8%.

Market Positioning Through Comparison with Competitors

The main points covered in this chapter are as follows:

• Symbiotic relationship with the 'manufacturer' Hoa Phat

• Strengths and weaknesses

• The 'divine wind' of anti-dumping duties

Symbiotic relationship with the 'manufacturer' Hoa Phat

If the industry giant Hoa Phat (HPG) is the 'maker,' then HMC is the 'distributor' professional. HMC covers mid-to-small scale demand that direct sales from manufacturers cannot reach, creating a complementary relationship in the market rather than a competitive one.

Strengths and weaknesses

The company's strengths include its logistics network specialized in the southern region and high barriers to entry due to the VNSteel brand. On the other hand, a potential weakness is that profits are highly dependent on price fluctuations of commodity products (such as hot-rolled coils).

The 'divine wind' of anti-dumping duties

In March 2025, the Vietnamese government officially imposed anti-dumping duties of up to 27.83% on Chinese hot-rolled coils and similar products. This suppresses cheap imports and normalizes domestic distribution prices. For distributors like HMC, this is a historic tailwind that enables the stabilization of procurement costs and the securing of sales price margins. (Reference: investing.com)

Summary

• The largest steel trading company in southern Vietnam, with a stable business foundation under the VNSteel umbrella

• Grew to a sales scale of 5.76 trillion VND in fiscal year 2025, achieving significant profit growth

• Further earnings improvement expected through 2026 due to the imposition of tariffs on Chinese steel products

• A value stock with a potential dividend yield of over 5%

Disclaimer

This article is for informational purposes only and does not recommend any specific financial products. While the information provided is based on publicly available data, we do not guarantee the accuracy of the figures. Please make final investment decisions at your own risk.

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