Companies upbeat on 2016 earnings reports

 

 

Hanoi (VNA) - The positive 2016 earning reports of over 90 percent of nearly 600 listed companies on the two national stock exchanges are providing a fresh impetus for the market.

Banks were reported the biggest gainers as profits of the total nine listed lenders accounted for about 25 percent of total profits on the two exchanges.

Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID), the three biggest listed lenders by market value, were also the most profitable.

Both Vietcombank and Vietinbank reported net profits of over 6.8 trillion VND (298 million USD) in 2016 (leaving out business results of their member and affiliate companies). BIDV followed with an after-tax profit of almost 6.2 trillion VND.

Military Bank (MBB) and Asia Commercial Bank (ACB) earned 2.9 trillion VND and 1.3 trillion VND in net profits, respectively.

The food and beverage industry also disclosed big profits.

Dairy giant Vinamilk (VNM) posted net profits of nearly 9.4 trillion VND, a yearly growth of 21 percent making it the biggest 2016 earner. Its total revenues reached 46.8 trillion VND while the company’s charter capital reached 15.5 trillion VND.

After two months of listing on the southern exchange, Sabeco (SAB), the country’s biggest brewery company, boasted a net profit of nearly 4.5 trillion VND, 22 percent higher than its yearly target. Its share price doubled the debut day to touch 215,400 VND a share on February 16, being the most expensive nationwide.

In terms of growth rate, steelmaking and real estate companies were the leaders thanks to strong recovery of the real estate market in the last quarter of 2016.

 

Pomina Steel Corp (POM) made a net profit of 301 billion VND, an 11-fold increase over the previous year. Nam Kim Steel (NKG) and Hoa Sen Group (HSG) also reported yearly growth of 312 percent and 130 percent, respectively.

Hoa Phat Group (HPG) posted a record profit of 6.6 trillion VND, up 89 percent year-on-year and double its yearly target.

Hoa Binh Construction & Real Estate Corp (HBC) saw its profits rise 585 percent year-on-year to 490 billion VND, while Novaland Investment Group (NVL) earnings jumped 274 percent to nearly 1.7 trillion VND.

In the oil and gas industry, the biggest listed stock PV Gas (GAS) reported a net earning of nearly 7.1 trillion VND, the second biggest earner in 2016 after Vinamilk, but this number was 17 percent lower than its 2015 result.

“These impressive figures are creating new energy for the market to grow,” Nguyen Duc Hung Linh, head of analysis and investment consultancy for Saigon Securities Inc, told the Finance-Business News on VTV1 channel.

The benchmark VN-Index on the HCM Stock Exchange stepped over the resistance 710 points on February 15, the highest since February 21, 2008 and a rally of over 7 percent compared to December 30, 2016.

In 2017, analysts suggest investors pay attention to the stocks which may benefit from Government policies.

“Investors can consider the businesses or industries benefiting from policy as these companies often have outstanding business results,” Linh said and noted the example of construction and real estate firms, which have picked up in the past two years thanks to policy support.

The current policy focuses on infrastructure development in order to lay a solid foundation for economic growth in the coming years and this could be a favourable condition for the strong growth of the real estate sector, he said.-VNA