Vietnam’s listed non-financial firms post three-digit growth in profits for Q1
Vietnam’s listed non-financial firms post three-digit growth in profits for Q1
Strong business results were thanks to sound performance in fields of real estate, natural resources, chemicals and services.
Vietnam’s non-financial companies in the stock market posted a profit growth of 157% year-on-year in the first quarter of 2021, while revenue slightly rose by 8.6%, according to data provided by financial firm FiinGroup.
Production at Ca Mau Fertilizer Complex. Photo: Hoang Anh
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Data from the firm revealed as of May 7, 854 out of 1851 banks and firms on three stock exchanges of the Ho Chi Minh City Stock Exchange (HoSE), Hanoi Stock Exchange (HNX) and Unlisted Public Company Market (UPCoM) have released their respective financial statements for the January-March period.
“A surge in profit growth of non-financial firms was thanks to strong performance of those in the fields of steel production and oil, along with good results from firms’ non-core business activities and the low-profit base from the same period of last year,” said FiinGroup’s expert.
Strong business performance was also recorded in other fields of real estate, natural resources, chemicals and services.
Among those having published financial records, 546 have released business plans for the whole year with estimated revenue and post-tax profits rising by 15.1% and 16.5% year-on-year, respectively.
Meanwhile, such firms have completed 23% of their yearly revenue plans and 27.2% of profit plans.
However, FiinGroup also noted public enterprises under Vingroup, accounting for 20% of total market capitalization of non-financial firms, have not announced their business plans for this year.
“Estimated growth for revenue and profit, therefore, may not fully reflect the prospect of the entire business group,” noted FinnGroup.
Profit in the first quarter of the 27 banks listed on the stock market grew by an impressive rate of 77.4% year-on-year, while operational revenue declined by 28.4%.
“Increases in net interest margin (NIM), positive performance of services and lower cost for credit loss provision are three major factors boosting their profits in the first quarter and also for the whole year,” stated the financial company.
Meanwhile, value of bank stocks is on the rise since April 26. VPBank was the growth driving force for a 2.8% increase value of the banking sector in the final week of April, thanks to the deal of selling 49% stake in its consumer financial firm FE Credit to Japan-based Sumitomo Mitsui Banking Corporation worth US$1.4 billion.
