Listed firms post strong Q1 earnings with utilities leading rallies

Listed firms post strong Q1 earnings with utilities leading rallies

Net profit across the market rose nearly 23 per cent year-on-year, marking the sixth consecutive quarter of growth, according to a report from VNDirect Securities.

Electricity production operations at Nhơn Trạch 2 PVPower Company, a subsidiary of PV Power. — VNA/VNS Photo

Việt Nam’s equity market witnessed a robust earnings rebound in the first quarter of 2025, as nearly a thousand listed companies disclosed financial results showing widespread improvement across sectors.

Market net profit rose nearly 23 per cent year-on-year, marking the sixth consecutive quarter of growth, according to a report from VNDirect Securities. The rally was fuelled by a low comparison base and accommodative interest rate policies, which helped stimulate business activity and consumer demand.

The electricity sector stood out as the best performer, with net profit skyrocketing by 224 per cent, compared to the same period last year.

This sharp recovery was driven primarily by increased output from gas-fired power plants and improved hydropower production. Hydrological conditions normalised after the prolonged El Niño-induced drought in 2023, allowing hydroelectric operators to ramp up capacity.

Real estate firms posted a dramatic 134 per cent increase in aggregate net profit year-on-year, bolstered by easing monetary conditions and more flexible credit and sales policies.

The recovery was especially notable among large developers. Vinhomes reported a 204 per cent surge in net profits, while Khang Điền and Đất Xanh Group posted gains of 92 per cent and 55 per cent, respectively. The turnaround indicates a stabilisation in the residential market after months of stagnation.

The personal and household goods segment recorded a 62 per cent jump in profits, buoyed by a pick up in export orders, especially in anticipation of potential new tariffs from the US. The chemicals industry benefitted from a decline in raw material prices, helping raise sector-wide profits by 45 per cent.

Retailers also performed well, with sector net profit rising 44 per cent. Mobile World Investment Corporation, one of Việt Nam’s top consumer electronics retailers, led the gains with a 71 per cent rise in net profit. The improvement was largely attributed to restructuring efforts, which helped eliminate non-recurring costs and streamline operations.

In contrast, the oil and gas sector saw earnings slump by 64 per cent year-on-year. A nearly 9 per cent decline in the average Brent crude price during the quarter weighed heavily on upstream and downstream firms alike.

Petrolimex, the country’s largest petroleum distributor, saw net profit plunge 88 per cent, reflecting the impact of weaker global oil prices and demand volatility.

Across most sectors, profitability metrics improved.

The average earnings before interest, taxes, depreciation and amortisation (EBITDA) margin rose from 15.4 per cent in Q1 2024 to 17.9 per cent in Q1 2025, suggesting more efficient operations and better cost controls.

Many businesses also reported lower debt-to-equity ratios and reduced interest expenses, signalling healthier corporate balance sheets following recent financial restructuring. 

Bizhub