Profits slow in first quarter for listed firms
Listed companies have seen profits slow by 8.8 percent from the previous
quarter, according to StoxPlus Corporation.
Listed companies have seen profits slow by 8.8 percent from the previous
quarter, according to StoxPlus Corporation.
About 260 of the 500 companies with shares listed on the nation’s two stock exchanges posted their first-quarter business results before May 7, with net profits – excluding commercial banks – totaling over 6.4 trillion VND (340 million USD).
Among 100 firms that didn’t increase their charter capital last year, the growth in net profits lagged behind revenue growth, said StoxPlus general director Nguyen Quang Thuan, who noted that small caps faced even more difficulties due to rising capital costs.
The companies that saw the highest growth in net profit were 63 firms that increased their charter capital this year. Their revenues rose by 123 percent over same period of last year and net profits soared 223 percent.
The top-four listed companies by first-quarter profit, among those that had reported results by May 7, were Vinamilk (VNM) with a profit of 816.8 billion VND (43.2 million USD), Phu My Fertilisers (DPM) with 394.8 billion VND (20.9 million USD), software giants FPT with 384.4 billion VND (20.3 million USD), and commercial baker Kinh Do Corp (KDC) with 355.9 billion VND (18.8 million USD).
The other four companies with quarterly profits in excess of 200 billion VND (10.6 million USD) were Hoa Phat Group Co (HPG), Saigon Securities Inc (SSI), Pomina Steel Corp (POM) and Pha Lai Thermal Power Co (PPC).
Profits of building material and natural resources sectors declined the most, by 26.3 percent and 18.5 percent respectively. Around 90 percent of the listed companies on the Hanoi bourse saw their profits fall from the previous quarter.
“The profit decline could be attributed to seasonal causes,” suggested the director of one construction company with shares listed on the northern bourse, who asked to remain unnamed.
The energy sector also saw profits decline on a quarterly basis, with the profits of Pha Lai Thermal Power Co (PPC) falling by 29.2 percent and those of Vinh Son-Song Hinh Hydro-power Co (VSH) by 30 percent.
The food and beverage sector saw the brightest growth during the first quarter, with listed companies in the sector posting a combined profit of 1.45 trillion VND (76.8 million USD), an increase of 43 percent over the final quarter of last year, with VNM and KDC among the most profitable companies.
Profits in the banking and financial services sector, meanwhile, grew by just 23 percent, far off the 500 –per-cent growth of the same period of last year, a slowdown that could be attributed to a sluggish stock market in the first three months of the year and slow credit growth in the commercial banking sector./.
About 260 of the 500 companies with shares listed on the nation’s two stock exchanges posted their first-quarter business results before May 7, with net profits – excluding commercial banks – totaling over 6.4 trillion VND (340 million USD).
Among 100 firms that didn’t increase their charter capital last year, the growth in net profits lagged behind revenue growth, said StoxPlus general director Nguyen Quang Thuan, who noted that small caps faced even more difficulties due to rising capital costs.
The companies that saw the highest growth in net profit were 63 firms that increased their charter capital this year. Their revenues rose by 123 percent over same period of last year and net profits soared 223 percent.
The top-four listed companies by first-quarter profit, among those that had reported results by May 7, were Vinamilk (VNM) with a profit of 816.8 billion VND (43.2 million USD), Phu My Fertilisers (DPM) with 394.8 billion VND (20.9 million USD), software giants FPT with 384.4 billion VND (20.3 million USD), and commercial baker Kinh Do Corp (KDC) with 355.9 billion VND (18.8 million USD).
The other four companies with quarterly profits in excess of 200 billion VND (10.6 million USD) were Hoa Phat Group Co (HPG), Saigon Securities Inc (SSI), Pomina Steel Corp (POM) and Pha Lai Thermal Power Co (PPC).
Profits of building material and natural resources sectors declined the most, by 26.3 percent and 18.5 percent respectively. Around 90 percent of the listed companies on the Hanoi bourse saw their profits fall from the previous quarter.
“The profit decline could be attributed to seasonal causes,” suggested the director of one construction company with shares listed on the northern bourse, who asked to remain unnamed.
The energy sector also saw profits decline on a quarterly basis, with the profits of Pha Lai Thermal Power Co (PPC) falling by 29.2 percent and those of Vinh Son-Song Hinh Hydro-power Co (VSH) by 30 percent.
The food and beverage sector saw the brightest growth during the first quarter, with listed companies in the sector posting a combined profit of 1.45 trillion VND (76.8 million USD), an increase of 43 percent over the final quarter of last year, with VNM and KDC among the most profitable companies.
Profits in the banking and financial services sector, meanwhile, grew by just 23 percent, far off the 500 –per-cent growth of the same period of last year, a slowdown that could be attributed to a sluggish stock market in the first three months of the year and slow credit growth in the commercial banking sector./.
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