An outlet of Hang Xanh Motors Service Joint Stock Company (Haxaco). (Photo: haxaco) The VietnamEngine and Agricultural Machinery Corporation (VEA) ended 2021 with revenue of 4.02trillion VND (176.4 million USD), an increase of 9.6 percent compared to 2020.
Its jointventures and associates brought in profit of more than 5.1 trillion VND for thewhole year. This helped VEA earn profit before tax of 5.94 trillion VND for thewhole year. Profit after tax increased by 3.6 percent to 5.79 trillion VND.Earning per share (EPS) was 4,321 VND.
VEA’s jointventure companies include Honda Vietnam, Toyota Vietnam, and Ford Vietnam. VEAis enjoying high profits from joint ventures and associates.
After thefirst three quarters of negative earnings, even losing 30 billion VND in Q3,Saigon General Service Corporation (Savico) recorded a net profit of 75.5billion VND in Q4.
In the wholeof 2021, Savico’s revenue reached 14.12 trillion VND, a decrease of 12 percentcompared to last year. After tax profit decreased by 6 percent to 144billion VND.
In 2021,Savico set a target of nearly 237 billion VND in after-tax profit, therebyit achieved 90 percent of the revenue plan. Meanwhile at the end of the first 9months of the year, the completion rate was only 38 percent.
Trading isSavico’s main business as it contributes up to 90 percent of annual revenue, ofwhich automobile distribution brings the majority of revenue of this segment.Currently, Savico owns about 50 dealers, including 13 Toyota dealers, 15 Forddealers, eight Hyundai dealers, two Chevrolet, three Volvo,two Fuso, and some other brands such as Veam, Hino, Mitsubishi,Honda and Suzuki.
Thanks toincreased revenue and improved gross profit margin, Hang Xanh Motors ServiceJoint Stock Company (Haxaco) earned net profit of 126 billion VND in Q4 of2021, doubling the same period a year earlier. This result helped the businessachieve profit growth of 28 percent for the whole of 2021 with 160 billionVND.
The companyattributed the high profit to the reopening of HCM City from the fourth quarter.Haxaco promoted advertising campaigns on online platforms, maximising profit oneach vehicle and further reducing costs.
TheGovernment's supportive policy on reducing registration fees for carsstimulated the shopping demand of consumers. Accordingly, the number ofvehicles sold by Haxaco increased again, reaching the sales target, the companysaid.
In addition,the preferential interest rates of affiliated banks as well as the effectiveuse of capital contributed to reducing financial costs and increasing profits.
In the wholeof 2021, Haxaco achieved 5.55 trillion VND of net revenue, equivalent to 2020. Post-tax profit reached 160 billion VND, up 28 percent compared to lastyear. Earning per share (EPS) was 3.34 VND. This was also the highestprofit Haxaco ever achieved.
City Auto(CTF), specialising in the distribution of Ford cars, announced its revenue inthe fourth quarter of 2021 reaching 1.67 trillion VND, 5 times higher than inthe third quarter. The fourth quarter's profit reached 39 billion VND, thehighest profit in many recent quarters of CTF.
Profit for thewhole of 2021 reached 47 billion VND, many times higher than 1 billion VND in2020. City Auto explained that the auto market grew in the fourth quarter of2021 and the cost control policy helped increase profits.
This year, CTFsets a business plan to grow strongly with revenue reaching 7.38 trillion VND,up 130 percent and profit after tax reaching 80 billion VND, up 5,59 percent.
Positiveoutlook for 2022
Recently, SSIResearch released a report assessing the short-term prospects of autocompanies. Accordingly, SSI Research forecast that with the Government's rapidand strong vaccination strategy and new COVID-19 variants, it is likely thatthere will be less risks to health, thereby less social distancing measures.Automotive demand in 2022 is expected to increase by 16 percent.
According toSSI Research, the current car ownership rate in Vietnam is still low. Inaddition, the trend of using electric vehicles in Vietnam led by VinFast willdrive the demand for cars even higher.
SSI Researchbelieves that car buying demand will not be strong in the first half of thisyear due to the possibility of new variants of COVID-19. In the second half of2022, car sales will begin to increase, which will be the driving force forauto sales results./.
VNA
