Although the Vietnamese economy remains in difficulty, many big companies like VNM, DPM and CTG still made huge profits in the third quarter of this year.
Basic industries generate hefty profits
After five years in crisis, real estate and shipping are among hardest-hit industries. Thus, it comes as no surprise that companies in these industries are facing the wall because of substantial losses.
Meanwhile, there are still highlights in the gloomy picture, with primary commodity industries in the limelight. Vietnam Dairy Products Joint-Stock Company (Vinamilk) is a vivid example in consumer goods sector.
Vinamilk (stock symbol: VNM) is always one of the first names to be mentioned on the list of biggest profit companies. In the third quarter of 2012, the largest milk producer in the country earned a profit of more than VND1,390 billion, an increase of 34 per cent over the same period of 2011, bringing the total earnings in the first nine months to VND4,145.88 billion, up 32.36 per cent.
The Hochiminh Stock Exchange (HOSE)-listed company recorded VND6,689 billion in net revenue, an increase of 16.21 per cent year on year. Its cash and cash equivalents as of the end of the third quarter was VND541 billion, a sharp decline from VND3,101 billion the start of the year.
Gas is also opposite to real estate or shipping industry. Thus, it holds no surprise to investors when PetroVietnam Gas Corporation (ticker: GAS, HOSE) reported a decent net profit of VND2,762.57 billion in the third quarter, up 27.2 per cent year on year, grossing VND7,316 billion from January to September.
GAS has a mouthwatering cash hoard. As of the end of the third quarter, the biggest gas firm in the country had VND10,462 billion of cash and cash equivalents, an increase of VND2,150 billion from the start of the year.
Banks are cash cows
Although the profitability of the banking sector is appreciated as high as previous year, Vietnam Joint Stock Commercial Bank for Industry and Trade (stock symbol: CTG, HOSE) and Joint Stock Commercial Bank for Foreign Trade of Vietnam (stock symbol: VCB, HOSE) still reported handsome profits.
Only in the third quarter of 2012, Vietinbank (CTG) bagged more than VND2.400 billion of profit, up 73 per cent year on year, and accumulated VND4,566 billion in the first nine months of the year, up 10.61 per cent.
In the third quarter alone, interest margin fell 13.45 per cent to VND4,566 billion, and service activities netted profit of VND264.13 billion, a high rise from a year ago. CTG suffered a loss of VND6.54 billion from investment securities, compared with the net loss of VND76 billion a year earlier.
A sharp drop in operating expenses was also attributed to the net profit rise of 73 per cent in the third quarter to VND2,414 billion.
Vietcombank (VCB) had slower growth than CTG. In the third quarter, the lender’s profit before tax increased by 6 per cent year on year to VND1,436 billion, totalling more than VND4,200 billion in the first nine months.
Notably, when CTG suffered loss in securities investment activities, VCB earned a net profit of VND100 billion from this business.
FPT, PVD and DPM yield tidy profits
Although in the third quarter, PetroVietnam Fertiliser and Chemicals Corporation (DPM), FPT Corporation (FPT) and PetroVietnam Drilling and Well Services Joint Stock Company (PVD ) did not reaped as great profits as VNM, VCB and CTG, their earnings exceeded VND1,000 billion in the nine month period.
FPT reported its pre-tax profit at VND1,755 billion in the first nine months, equal to 69 per cent full-year plan, on revenues of VND17,616 billion. Net shareholder profit of parent company reached VND1,091 billion. Earnings per share (EPS) was VND4,023.
FPT said its good performances resulted from service businesses and software export. Telecom service, online services, information technology services saw growth rate of over 26 per cent. Software export jumped over 31 per cent.
Meanwhile, DPM estimated the pre-tax profit at VND2,610 billion and completed most business plans in the first nine months.
PVD announced the consolidated revenues at VND8,000 billion, and net income at nearly VND1,100 billion in the nine months, equal to approximately 97 per cent of the yearly plan. PVD expected to complete its full year earning plan of VND1,150 billion in October.
For the time being, investors expect other big names on the stock market will soon announce positive business results. They are now looking at Hoang Anh Gia Lai Group (HAG), Asia Commercial Bank (ACB), Vingroup (VIC) and Masan Group (MSN).
VTC
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