Dragon Capital Forecasts Profit Growth of Vietnam Listed Firms at 68.9% in 2009
Dragon Capital forecast that Vietnamese listed companies will post a growth of 68.9% in their pretax profit this year and 15.6% in 2010, compared to negative growth of 16.4% last year when the country fell into crisis.
The earning per share (EPS) of the market is estimated to rise 58.4% this year, higher than 53% in 2007 and -39.8% in 2008.
The P/E ratio will stand at 16.5 this year and fall to 15.5 in 2010, Dragon Capital said at the meeting with over 40 enterprises listed on the Hochiminh Stock Exchange last weekend.
Rising money inflows into the economy have also helped boost the stock market rally, it said, noting that banks extended their subsidized loans to VND409 trillion since early Feb. and the amount of VND200 trillion will be available for disbursement by end-2009.
The General Statistics Office estimated that inflation was 4.1% since early 2009, compared to average nine-month inflation of 5.4% over the past ten years.
Many companies are expected to post 2009 profits equal to their registered capital, such as Vinamilk (VNM), Sudico (SJS), Gemadept (GMD), Casumina (CSM), Hau Giang Pharmaceutical (DHG), Danang Rubber (DRC), Tien Phong Plastic (NTP).
Rising confidence of investors in good performance of listed firms in remaining months of 2009 and next year have helped accelerate cash inflows into the market.
The VN-Index has risen nearly 100% since the start of this year. (Saigon Economic Times)
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