Many listed companies gained big profits

Rubber companies benefit from the strong recovery in rubber prices in 2017

Securities and real estate wake up

Preliminary statistics released by the State Securities Commission at the conference on deployment of securities market development tasks in 2018 showed that up to the end of Q4/2017, total profit before tax of securities companies is estimated at 7 trillion VND, more than double the performance of 2016. The number of securities companies reported to be over target was 63, while 21 companies reported losses. Corresponding to this information, business results announced by many securities companies indicated many positives. Specifically, according to business results reported in the fourth quarter of 2017, Saigon Securities Incorporation SSI, recorded revenue up 19% and profit before tax increased nearly 21%, reaching 2,957 billion VND and 1,278 billion VND respectively. SSI expects pre-tax profit in 2017 to reach over 1,390 billion VND based on interim forecasts of associates' profit after tax in Q4/2017 exceeding 31% of its business plan.

Similarly, Viet Dragon Securities Company (VDS) also recorded 354 billion VND in revenue, an increase of 55% compared to 2016, and profit before tax was 138 billion VND, up 126% compared to 2016. According to VDS, the positive movement of the Vietnamese stock market had much better liquidity compared to the same period, and was accompanied by good professional effort. Taking advantage of the opportunities of the market has helped VDS business grow strongly. Especially, trading activities, margin trading and brokerage business bring big revenue for the company.

A good result was from the Bank for Agriculture and Rural Development (BIDV). It reported a pre-tax profit of 78 billion VND in comparison to a loss of 366 billion VND last year. FPTS also recorded the highest net profit in 8 years with a pre-tax profit of 218 billion VND , up 20% over the previous year.

2017 is also a good year for the real estate market, helping many companies in this industry achieve good growth. Specifically, Phat Dat Real Estate Development Joint Stock Co has just released its consolidated financial report for Q4/2017 with net profit of 448 billion VND, nearly doubling from 242 billion VND in 2016.

Nam Long gained net revenue of 3,161 billion VND, up 25%, or 88% of the plan. In addition, the cost of goods sold throughout the year increased below 10%, helping Nam Long net profit increase strongly to 55%, with over 535 billion VND. Net profit after tax was 864 billion VND. Dat Xanh Real Estate Services and Construction JSC (DXG) has announced its business results for the whole year 2017, with net sales of 3,000 billion VND, after tax profit of 750 billion VND, exceeding the target by 7%.

Similarly, Thu Duc Housing Joint Stock Co (TDH) also announced its business results for 2017 with expected sales of 1,947 billion VND, up 70% compared to 2016 and surpassing 43% of the whole year target. 2017 net profit will come to 142.4 billion VND, up 32% compared to 2016 and surpassing the target by 9%. The company said the results came from positive sales growth in a number of projects. Of which, the Binh Chieu apartment building project sold 145 units in a month. TDH-Tocontap sold 40 units immediately after sales opening, and projects like TDH - Truong Tho, TDH - Phuoc Binh, Long Hoi City have sold almost 100%.

Rubber and hydro-power are the beneficiaries

Along with many other businesses, the situation of heavy rain in 2017 has helped increase electricity production, bringing high revenue for hydro-power companies. All hydro-power companies recorded significant profit growth compared to 2016 and far exceeded their target. Financial report from Thac Mo Hydro-power Joint Stock Company (TMP) shows that net sales in FY2010 reached 700 billion VND, growing 56% and exceeding 48% of the year plan; Net profit was nearly 311.5 billion VND, 3 times higher than that of 2016 and doubled for the whole year.

Similarly, Central Hydro-power JSC (CHP) achieved net sales of 860 billion VND in 2017, after tax profit of 410 billion VND, up 59% compared to 2016. Se San 4A Hydro-power Joint Stock Company (S4A) reached 286 billion VND in revenue, up 27% and profit after tax of more than 134 billion VND, nearly double the profit in 2016. With this result, S4A surpassed 3% of the revenue plan and exceeded 90% of profit target for the whole year. In addition, DRL reached 100 billion VND in revenue and 63 billion VND in net profit, up 56% and 88% respectively compared to 2016.

Rubber latex recovery in 2017 also creates a strong driving force for natural rubber business interest. Specifically, the output of rubber consumption in Phuoc Hoa Rubber JSC (PHR) in 2017 was 29,500 tons, down nearly 5% compared to 2016. However, thanks to the average rubber price increasing to 31%, the total turnover reached 1,581 billion VND, 24% higher than that of 2016; pretax profit came to 418 billion VND, up 33% compared to 2016 and surpassing 54% of the plan. Together with that, Thong Nhat Rubber Joint Stock Company (TNC) also posted after tax profit of 27 billion VND, up 19%; Ba Ria Rubber Joint Stock Co (BRR) reported an after-tax profit of 87 billion VND, up 163% compared to 2016 and exceeding 77% of the full year target.