The SSI Securities Research Center announced estimated profits of 39 businesses, of which 24 will have second-quarter profit growth over the same period last year and 15 units decreased.
Businesses with positive profit growth include ACB, BMP, CTG, DHC, DPM, FPT, HDB, HPG, HSG, IMP, MBB, NT2, PC1, PHR, POW, PVS, TCB, TCM, TPB, VCB, VIB, VNM, VPB, VTP.
In contrast, businesses with reduced profits include ACV, AST, BID, DRC, GAS, HVN, MSH, MSN, MWG, PNJ, QNS, SAB, STK, VEA and VHC.
Asia Commercial Bank (HNX: ACB): By the end of May, credit growth reached 4% and pre-tax profit of about VND 3,500 billion.
Therefore, SSI Research estimates that in the first half of the year, ACB’s profit before tax reached more than VND 4,000 billion. ACB is likely to grow profit in the second quarter.
Binh Minh Plastics (HoSE: BMP): In the first 5 months, revenue was estimated to increase by 8%, net profit increased by 18% over the same period last year. Profits increased due to a 6% increase in sales and a fall in PVC prices.
Particularly in April and May, revenue increased 5% and net profit increased 24%.
VietinBank (HoSE: CTG): Profit before tax in the second quarter was VND 3,030 billion, up 38.7% compared to the same period last year. The momentum is driven by 1.5% credit growth and 2% deposit mobilization. The provision expense in the quarter increased significantly due to the forecast of increasing bad debt in the following quarters.
Dong Hai Ben Tre Company (HoSE: DHC): According to the Board of Directors’ disclosure at the Annual General Meeting of Shareholders, the profit after tax of the first 5 months of the year was VND 157 billion, much higher than the VND 46 billion in The first 6 months of 2019. The outstanding growth comes from the new Giao Long 2 factory running at full capacity.
PetroVietnam Fertilizer and Chemicals Corporation (HoSE: DPM): Revenue and profit before tax in the first 6 months were estimated at VND 4,040 billion and VND 425 billion, up 14% and 420%, respectively, compared to the same period last year. . Strong growth of DPM’s profits thanks to low oil prices and an increase in output with key products.
FPT (HoSE: FPT): Profit before tax in the second quarter is expected to increase slightly. Looking back in April and May, total profit before tax was about VND 850 billion, up 12% over the same period while revenue increased by 6.4%. This means that the profit margin before tax is improved thanks to the telecom service (through lower advertising costs).
HDBank (HoSE: HDB): Credit growth was very strong in the second quarter. By the end of May, the bank’s credit growth was 8% and HD Saison was around 6-7% compared to the beginning of the year.
Profit before tax in the first half of the year is expected to reach VND 2,800 billion, up 26.7% over the same period last year.
Hoa Phat Group (HoSE: HPG): The management stated that net profit in Q2 is about 2,700 billion dong, up by 32% YoY and up by 17% YoY – a record high. Accordingly, net profit in the first half of the year may reach 5,000 billion, up 30%. Outstanding profits in the second quarter came from increased steel sales, increased profits in agriculture and reversal of provision for exchange rate losses incurred in the first quarter.
Hoa Sen Group (HoSE: HSG): Net profit for the third quarter of 2019-2020 is expected to reach VND 290 billion, up 80% over the same period last year thanks to the improved profit margin when the price of hot rolled steel (HRC) in low. However, output may be flat compared to the same period last year.
Imexpharm Pharmaceuticals (HoSE: IMP): Businesses announced first 5-month results with net sales and profit before tax increasing by 1.4% and 8.1% respectively, compared to the previous year.
For the new factory, Imexpharm 4 also did not meet the EU-GMP standard as originally planned due to border closures in the countries assessed.
Military Bank (HoSE: MBB): MBB’s profit before tax is expected to be flat or a one-digit growth in the second quarter due to the parent bank’s credit growth of about 4% and efforts to save operating costs.
PetroVietnam Power Nhon Trach 2 Company (HoSE: NT2): At the General Meeting of Shareholders, the Board of Directors revealed that the profit after tax for the first half of the year was approximately VND 400 billion, up 3.5%. Therefore, the profit after tax in the second quarter will increase by 6.1%.
SSI Research believes that NT2’s profit will improve thanks to lower gas prices and reduced losses from exchange rate differences.
Electricity Construction Company No. 1 (HoSE: PC1): According to the information from the annual General Meeting of Shareholders, the profit after tax for the first half of the year was about VND 250 billion, up 5.4% over the same period and fulfilling 53% of the plan.
Thus, the profit after tax in the second quarter reached VND 160 billion, up 11.2%. Net profit margin was 9.4% higher than 8.3% in the same period last year thanks to the completion of selling Thanh Xuan real estate project.
Phuoc Hoa Rubber (HoSE: PHR): The company will receive land compensation income of VND 300 billion in the second quarter. Thanks to that, the first half revenue is 400 billion dong, down by 30% but EBT is 605 billion dong, up by 280% YoY.
PV Power (HoSE: POW): At the annual General Meeting of Shareholders, the management shared that the profit after tax in the first half of the year could reach 1,550 billion VND, down 8.7% compared to the same period last year, implementing 76 % of year plan. This means that the profit after tax in the second quarter will be about VND 1,000 billion, an increase of 33% mainly due to the Vung Ang coal thermal project. POW’s profit improved partly due to a decrease in exchange rate loss (USD / VND exchange rate at the end of Q2 dropped by 1.8%).
PetroVietnam Technical Services Corporation (HNX: PVS): Second quarter net profit increased by 56% to 229 billion dong. This is a positive result in the context of the Covid-19 epidemic and a sharp drop in oil prices.
Techcombank (HoSE: TCB): Profit before tax in the second quarter is forecast at VND 3,200 billion, up 5.1%; credit growth reached 4.8% and deposit reached 3.2%. Credit growth is driven by corporate bonds and loans to large businesses.
Thanh Cong Textile Garment – Investment – Trading Company (HoSE: TCM): The company announced second quarter net revenue of US $ 40 million, up 20.3% over the same period last year; EAT is about 3.33 million USD, up by 46.4%.
Profits increased positively thanks to orders for masks and medical protective gear exported to the US (about US $ 15 million in revenue). TCM has an advantage over other garment enterprises in competing against antibacterial fabric masks for producing fabrics. This allows businesses to meet orders quickly, only takes 2-3 weeks to complete the order.
TPBank (HoSE: TPB): Q2 profit before tax is about 1,000 billion dong, up by 30% YoY due to 11% credit growth and 9% YoY deposit. Credit growth mainly comes from corporate bonds and loans to large corporations.
Vietcombank (HoSE: VCB): Profit before tax in the second quarter is estimated at VND 6,100 billion, up 12% over the same period due to an increase of 3.4% in credit and deposits. Return on investment (ROI) has been improved with higher marginal interest (NIM) thanks to strong growth in retail lending. Bad debt is expected to be low at 0.82%.
VIB (UPCoM: VIB): Credit growth is 6% compared to the beginning of the year and the bank is asking for more credit lines. The management said it saw a negative impact from Covid-19 on existing loans. In the first 6 months, only VND 500 billion, equivalent to 0.37% of total debt in the first quarter was restructured and the loan of VND 8,500 billion, equivalent to 6.3% of the total loan outstanding in the first quarter, were eligible for interest rate reduction from 0.5-2%.
Profit before tax in the first 6 months is expected to be 2,500 billion VND, up 36% over the same period.
Vinamilk (HoSE: VNM): Management estimates that net revenue and net profit will increase by 6.6% and 6.7% over the same period despite the Covid-19 effect. Consolidation of GTNFoods is a key factor for revenue growth while profit increases thanks to better profit margins.
VPBank (HoSE: VPB): By the end of May, credit growth reached 12%.
Profit before tax is expected to reach VND 6,000 billion in the first half, an increase of 38% over the same period; second quarter profit increased 20% over the same period.
Viettel Post (UPCoM: VTP): In the second quarter, SSI Research predicts a profit growth of about 15-20%, decelerating from the surge in the first quarter (26%). Core business activities will not be affected by epidemics like other industries.
Airports Corporation of Vietnam (UPCoM: ACV): SSI Research predicts ACV can record breakeven in the second quarter as the disease has limited the number of passengers passing through airports. ACV has a large financial income from interest on deposits of about VND 500 billion each quarter to minimize losses.
Taseco Airs (HoSE: AST): Revenue from international passengers usually accounts for 60% of total revenue. In the second quarter, there were almost no international passengers, while domestic passengers only returned at the end of June. However, the company successfully negotiated to reduce fixed costs such as rents and employment costs for 3 months from March.
Therefore, SSI Research expects the company to break even in the second quarter.
BIDV (HoSE: BID): The bank’s pre-provision profit in the second quarter was estimated at VND 6,450 billion, down 16.8% compared to the same period last year. Credit growth increased by about 1.3% compared to the beginning of the year. Large loan packages, program costs and loan restructuring for clients affected by the Covid-19 epidemic have eroded profits.
Danang Rubber (HoSE: DRC): Turnover and profit before tax in the first 6 months were estimated at VND 1,661 billion and VND 94.8 billion, down 17% and 14% respectively, compared to the same period last year. This will only fulfill 38% and 34% of the plan for 2020. DRC’s sales are negatively affected by Covid -19.
PV Gas (HoSE: GAS): The business said that the first 5 months’ revenue was VND 27,600 billion and profit before tax was VND 4,500 billion, fulfilling 46% and 45% respectively.
SSI Research expects its profit in the second quarter to fall by 35% due to a sharp 56% year-on-year decline in oil prices.
Vietnam Airlines (HoSE: HVN): Enterprises can record record losses in the second quarter due to the halt of international flights and domestic flights in June.
May Song Hong (HoSE: MSH): The management said that businesses faced numerous difficulties during the end of the first quarter and second quarter such as lack of raw materials, canceled orders, delayed payment, large inventory and lack of order. Businesses expect recovery in the second half of the year.
Masan Group (HoSE: MSN): The company will be profitable in the second quarter but decreased sharply over the same period last year due to the consolidation of VCM.
Mobile World Investment (HoSE: MWG): In April and May, the company’s net revenue was VND 18,139 billion, up 2%; net profit of 591 billion, down 21%. Profit declined due to 600 stores temporarily closed in April due to social isolation requirements and weakening consumption.
Phu Nhuan Jewelry (HoSE: PNJ): April saw a loss of 89 billion dong while the same period saw a profit of 53 billion dong and May saw a profit of 47 billion dong, up by 22%. Although PNJ’s profit recovered in May because of the increasing demand after being compressed, it could not offset the April loss due to the closure of socially-managed stores nationwide.
Quang Ngai Sugar Company (UPCoM: QNS): Soymilk production decreased by 10% in April, sideways in May and June. Meanwhile, low refined sugar output could drag down the whole segment’s performance of sugar and biomass electricity in the second quarter.
Sabeco (HoSE: SAB): SSI Research believes that Sabeco’s second-quarter profit will decline compared to the same period last year although management has shared some positive signals after the request for social divestment was lifted. Sabeco will take 2 years to achieve the same results as 2019.
Century Yarn (HoSE: STK): The company forecast very low profits in the second quarter, an extremely difficult quarter due to low demand while Chinese fiber manufacturers continue to increase the supply at low prices than Vietnam. The only bright spot in the second quarter is that it could be reversed the unrealized forex loss made in the first quarter, about 8 billion dong.
VEAM (UPCoM: VEA): Due to home demand in April, sales will have dropped significantly. Sales in May and June recovered gradually but did not return to levels before the outbreak of Covid-19.
As a result, SSI Research forecasts that the second-quarter consolidated profit may decrease by about 10% compared to the same period last year.