Red ink as listed firms post Q1 performance

Thursday, May 8, 2008
Financial results of listed companies in the first quarter were eagerly awaited by investors particularly when the market was seeing weak turnover. However, figures from websites of the Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Securities Trading Center (HaSTC) on May 4 showed that there was only a handful, of reports posted.
Namely, there were only 12 reports out of total 151 listed businesses in Ho Chi Minh Stock Exchange and 45 reports out of 135 listed business in HaSTC. However, information about quarterly business results was released at websites of many businesses such as Hoa Phat, FPT, REE, VNM and others while having not yet been listed at Ho Chi Minh Stock Exchange and HaSTC.
Business results in the first quarter demonstrated a significant difference in business of listed companies.

According to a report of REE, a multi-sector company specialising in real estate, securities, posted total revenue of 275.26 billion dong however ran a loss of 106.15 billion dong in pre-tax profit.

In the banking sector, STB reported a positive result although the credit market met big changes and difficulties over the last time. STB's pre-tax profit in the first quarter was 435 billion dong, a year-on-year increase of 135%, the bank's deposits increased by 133%, total outstanding loans 141%.

In the production sector, most of reports showed good business results, even some businesses had very impressive growth. As for the seafood processing sector, which was assumed to meet various difficulties in the export markets and disadvantages of the forex rate, ABT still reported after-tax profit growth of 52.39% compared to the same period last year, reaching 11.2 billion dong, fulfilling over 28% of its yearly plan. DPM gained a pre-tax profit of 425.5 billion dong, or 35.8% of the annual plan.

Although most of listed companies reporting business results early showed positive figures, many other businesses reported losses in business and production.

This demonstrated difference among listed companies. Among construction material group, some businesses were impacted from price increase. Namely, TCR reported a revenue reduction of 8% because of high increase in input costs.

Meanwhile, HPG reported good business growth in the first quarter.