Listed firms expect rosier third-quarter profits
Listed firms expect rosier third-quarter profits
Many listed firms anticipate a fair growth in their third-quarter profit pictures, partly leveraging low developments a year ago when pandemic repercussions reached their peak.
In the first half of the year, DIC Group counted $7.82 million in profit, eyeing a more than 60 per cent jump on-year.
This figure, however, just equals 10 per cent of the company’s full-year profit target.
Hoang Van Tang, CEO of DIC, said that the first half is often a low peak season for real estate firms as companies usually count on better profits in the last two quarters, particularly in the fourth quarter.
“We start launching sales at projects that have finalised their legal procedures. In the third quarter, we will focus on selling apartment units at Vi Thanh commercial residential bloc and at South Vinh Yen new urban area,” said Tang.
The company’s top leader stressed that besides reaping quick bucks from projects having apartments coming onto the market, they might catch profits from mergers and acquisitions, as well as other projects.
Aviation is one of the sectors anticipated to catch strong growth in the third quarter
The group of retailers is also anticipated to hold up growth momentum in the third quarter. Along with this, the revenue growth in the second half of ICT and consumer electronics is expected to outperform that in the first half, partly due to low developments in the same period last year.
For instance, in the first six months, FPT Retail posted $608.6 million in consolidated revenue, showing a 55 per cent jump on-year equal to 52 per cent of the year’s projection.
Of which, the total revenue of the Long Chau drugstore chain hit $174.2 million, triple that one year ago. Consolidated pretax profit reached $11.4 million, 3.5-fold on-year, reaching 37 per cent of the full-year plan.
The service sector would be the game changer leveraging a strong rebound of the tourism sector and domestic demand amid people’s increasing incomes and a 2 per cent VAT reduction until the end of 2022.
The company expects a fair growth level in its third-quarter business results rooted in the Long Chau drugstore chain’s continued expansion and booming demands for computers and electronic device purchases in the new school year.
Meanwhile, Tran Le Nguyen, CEO of major food maker KIDO Group, shared that after nearly three years, increased consumption in this year’s Mid-Autumn festival has brought robust growth to the company’s third-quarter profit compared to the previous two quarters.
This year, KIDO aims to launch 300 tonnes of Mid-Autumn cakes in the market.
According to Tran Khanh Hien, head of Research at VNDIRECT Securities, Vietnam’s GDP growth in the third quarter might peak at 11 per cent compared to the same period last year, before losing heat in the fourth quarter.
VNDIRECT has put Vietnam’s GDP growth at 7.1 per cent for 2022.
"This high growth comes from three factors," Hien said.
First, the low development in 2021’s third quarter when Vietnam’s GDP contracted 6 per cent on-year due to impacts of social distancing measures for pandemic containment.
Second, the service sector would be the game changer leveraging a strong rebound of the tourism sector and domestic demand amid people’s increasing incomes and a 2 per cent VAT reduction until the end of 2022.
Third, the execution of fiscal policies to aid growth, such as reducing the environmental protection tax on petrol or accelerating the disbursement of stimulus packages. These are expected to beef up Vietnam’s economic rebound in the second half, providing a source of inspiration for business activities during the period.
As such, many listed firms are forecast to see a strong rebound in the third quarter. Hien anticipated that firms in retail, fast-moving consumer goods, food and beverage, telecommunications, aviation, industrial real estate, and finance would be the most shining during the period.
