Vietnamese steel group Hoa Sen is planning to spin off and eventually list several subsidiaries, particularly its building materials retail chain Hoa Sen Home, as the company expects weaker profit prospects for the 2025 to 2026 fiscal year.

At its annual general meeting, the company presented two business scenarios. Under a conservative plan, revenue is projected to reach around VND 35 trillion, down more than 4% from the previous year, while net profit could fall about 32% to roughly VND 500 billion. Under a more optimistic scenario, revenue may rise to VND 37 trillion, though profit is still expected to decline by about 18%.

Alongside its restructuring strategy, Hoa Sen plans to raise the charter capital of Hoa Sen Home to VND 3 trillion in the initial stage and potentially increase it to VND 5 trillion to VND 10 trillion before launching an initial public offering (IPO) in the future. The group is also considering a similar approach for its plastics segment.

Following the restructuring, Hoa Sen said it will focus more on steel sheet production and exports, while its retail and plastics businesses are expected to operate more independently.