85% OF BUSINESSES LISTED ON STOCK MARKET REPORT PROFIT GROWTH IN Q3

As many as 706 enterprises, 85% of 832 listed companies on the Vietnamese stock market, generated profits during the third quarter of this year. The information was released by financial services company Stockplus' Fiinpro Platform.

Market capitalisation value of the 832 firms accounts for 95% of the whole market’s capitalisation value.

The rest said they fulfilled profit targets set for the quarter.

According to Fiinpro Platform, 832 companies had profits with a combined net value of VND73.6 trillion (US$3.16 billion) recorded in Q3, an increase of 22.8% over the same period last year.

Telecommunications, insurance and banking were the sectors with the highest net profit growth, respectively up by 355.4%, 49.3% and 45%.

Communication, chemicals and petroleum were the sectors with the strongest declines, down by 97.3%, 35% and 28.5% respectively.

Among the gainers, the banking industry recorded an impressive net profit value, earning VND22.8 trillion, accounting for 31% of the market’s net profit value.

In Q3, Vietcombank (VCB) was the best performer in the banking industry, achieving more than VND5 trillion in net profit, up 72% year-on-year. Next were Techcombank (TCB) and Vietinbank (CTG), reporting net profit of VND2.6 trillion and VND2.5 trillion, respectively.

The real estate sector recorded a net profit of VND11 trillion in the third quarter, up 19.7% from more than VND9 trillion recorded last year, accounting for 15% of the total market’s net profit.

Realty giant Vinhomes (VHM) alone contributed VND5.5 trillion, accounting for 50% of the sector’s total net profit, followed by Vincom Retail (VRE) and Vingroup (VIC), collecting VND717 billion and VND498 billion in net profit, respectively. Excluding Vinhomes (VHM)’s profit, the whole real estate sector only grew by 3% against 2018.

The telecommunication sector grew 3.5 times higher than the previous year, mainly thanks to the contribution of FPT Telecom (FOX), which recorded a net profit of VND340 billion, accounting for 81.3% of the industry's total net profit.

But the net profit of the telecommunication sector accounted for only 0.6% of the market’s total net profit.

The insurance sector made up of more than 1% of market’s total net profit, equivalent to VND774 billion, mainly thanks to Bao Viet Holdings (BVH), earning VND360 billion, up by 3.6 times year-on-year and PetroVietnam Insurance (PVI), collecting VND156.1 billion.

In the opposite direction, the communication sector saw the strongest drop in net profit with the total net profit slumping from over VND300 billion in Q3, 2018 to only VND8 billion in Q3 this year, equivalent to a plunge of 97.3%.

This was due to the net loss of VND120 billion of the Media firm Yeah1 Group (YEG) in Q3.

The chemical industry saw a net profit of VND1.7 trillion, mainly thanks to the main contribution of the Vietnam Rubber Industry Group JSC (GVR) (VND980.4 billion) and Phuoc Hoa Rubber Co (PHR) (VND444.8 billion).

Source: VCCI