Poor listed company profits

Banks and securities have high growth in profits.

Among the enterprises that have revealed their business results for the whole year of 2023, the leading in terms of huge profits is the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), with an estimated pre-tax profit of more than VND 41,000 billion, an increase of more than 15% compared to 2022. Following Vietcombank, all three state-owned commercial banks achieved profits of more than a billion USD.

In particular, the Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) announced that its individual bank pre-tax profit reached VND 26,750 billion, and its consolidated pre-tax profit reached over VND 27,400 billion. Thus, the bank's individual profit increased by 18.6% over the same period in 2022 and its consolidated profit increased by 18.8%. Similarly, the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) announced that it had completed its 2023 profit plan. Previously, the bank announced its 2023 plan with an individual pre-tax profit of VND 22,500 billion, an increase of 10.5% over 2022 and a bad debt ratio of less than 1.8%. Vietnam Bank for Agriculture and Rural Development (Agribank) estimates that its pre-tax profit for the whole year will reach about VND25,300 - 25,400 billion, an increase of 14.5 - 15% compared to 2022.

Banks still see profit growth for the whole year 2023

For joint stock commercial banks, some units have announced business results also showing very high growth. For example, Military Commercial Joint Stock Bank (MB) announced consolidated pre-tax profit of VND 26,200 billion, up 15% compared to last year and completing 100% of the annual plan. Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) achieved consolidated pre-tax profit of more than VND 9,500 billion, up 50% compared to 2022 and reaching 100% of the shareholder plan. Or Lien Viet Post Bank (LPBank) has just announced preliminary business results for 2023 with profit reaching VND 7,039 billion, up 24% compared to the previous year, completing 117% of the profit plan... In general, the profits of banks are forecast to continue to grow compared to 2022 despite an increase in bad debt provisions.

In addition to the banking group, securities companies also had a prosperous year when the VN-Index in 2023 increased by more than 12%. Thanks to that, Bao Minh Securities Company recorded a profit after tax for the whole year of 84 billion VND, while in 2022 it lost 96.5 billion VND. Thus, with a net profit plan of 33.3 billion VND in 2023, the company exceeded this target by 152.3%. MB Securities Company reported revenue in 2023 of 1,816 billion VND, down 7% compared to 2022, but profit after tax increased by 14% to 584 billion VND... Many securities companies have not announced their business results for the whole year, but after only 9 months of 2023, they have recorded a huge acceleration such as SSI, VNDirect, Techcom Securities Company, VietCap...

Manufacturing businesses profits go down

In contrast to the financial industry's profit picture, many manufacturing and business enterprises reported declining business results. Notably, Mekong Seafood Joint Stock Company reported a loss of more than VND 380 million in the fourth quarter of 2023, while in the fourth quarter of 2022 it had a profit of more than VND 3.7 billion. This brought the company's accumulated profit for the whole year to only over VND 703 million, down nearly 96% compared to the profit of nearly VND 17 billion in 2022. Previously, after only 9 months of 2023, a series of seafood companies reported plummeting profits such as Vinh Hoan down 50% compared to the same period in 2022; Multinational Investment and Development Joint Stock Company down 80%; Cuu Long An Giang Seafood Import-Export Joint Stock Company down 64%...

Or hydropower companies that used to report large profits now also have dismal business results. For example, Tay Bac Power Investment and Development Joint Stock Company (NED) reported a profit of only VND 3.45 billion for the whole year of 2023, down 82%; Se San 4A Hydropower recorded a pre-tax profit of VND 145 billion, down 22%... Some construction material companies such as steel and cement also made profits again compared to the large losses in 2022, but they are still far behind those from 2021 and earlier.

No exception, textile and garment enterprises also saw a decline in profits, such as the Vietnam Textile and Garment Group (Vinatex), which said that the total revenue of the group is estimated at VND 17,225 billion, down 5%, and pre-tax profit is estimated at VND 377 billion, down 69% compared to 2022, and this is also the lowest profit since the financial report was announced (2015).

In the general picture, the real estate industry is not out of trouble yet. First Real Estate JSC is the first real estate company to report its financial results for the whole year of 2023. Accordingly, First Real's sales and service revenue this year reached 169 billion VND, a sharp decrease compared to the figure of 384 billion VND for the whole year of 2022 and its after-tax profit was only 19 billion VND, down 83% compared to 2022...

Economist Dr. Dinh The Hien said that the poor profit picture in 2023 is not surprising. The biggest problem many companies face is that domestic consumption has shrunk sharply, higher than forecast. However, he said that in the new year 2024, the business situation will be brighter. The growth drivers include export orders that have gradually improved and can be clearly seen in the second quarter of 2024.

Next is the Government's push to disburse public investment. Finally, policies to reorganize and support the real estate market and remove legal obstacles for many projects will also help the market gradually recover. "The sectors that will recover sooner will be the consumer and export sectors. Real estate in particular still needs to be monitored and will recover more slowly," Dr. Dinh The Hien shared.

Sharing the same view, Ms. Nguyen Hoai Thu, General Director of Securities Investment - Vinacapital Fund Management Company, expects the economy to recover this year, inflation to continue to be stable and interest rates to remain low. In addition, key infrastructure projects will be a great driving force for the economy. In particular, real estate, construction materials, securities, consumer goods and banking will be the sectors with the most attractive growth rates.

According to the estimated profit report for the fourth quarter of 2023 of some enterprises of SSI Securities Company, some real estate companies such as Vincom Joint Stock Company are forecasted to continue to grow strongly in the fourth quarter of 2023, reaching VND 1,050 billion, up 33% over the same period, thanks to growth from core business activities. Or Khang Dien Housing Investment and Trading Joint Stock Company will continue to hand over apartments in The Classia project to homebuyers and can reach VND 365 billion in profit after tax, up 230% over the same period. In the industrial park real estate group, this analysis department estimates that the net profit in the fourth quarter of 2023 of Kinh Bac Urban Development Corporation can reach VND 457 billion, a sharp increase compared to the loss recorded in the fourth quarter of 2022...

Source: https://thanhnien.vn/loi-nhuan-doanh-nghiep-niem-yet-kem-sac-185240117224731702.htm