VietNamNet Bridge – The positive 2016 earning reports of over 90 per cent of nearly 600 listed companies on the two national stock exchanges are providing a fresh impetus for the market.

A customer at a Vietcombank branch in Ha Noi.

Banks were reported the biggest gainers as profits of the total nine listed lenders accounted for about 25 per cent of total profits on the two exchanges.

Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID), the three biggest listed lenders by market value, were also the most profitable.

Both Vietcombank and Vietinbank reported net profits of over VNĐ6.8 trillion (US$298 million) in 2016 (leaving out business results of their member and affiliate companies). BIDV followed with an after-tax profit of almost VND6.2 trillion.

Military Bank (MBB) and Asia Commercial Bank (ACB) earned VNĐ2.9 trillion and VND1.3 trillion in net profits, respectively.

The food and beverage industry also disclosed big profits.

Dairy giant Vinamilk (VNM) posted net profits of nearly VND9.4 trillion, a yearly growth of 21 per cent making it the biggest 2016 earner. Its total revenues reached VND46.8 trillion while the company’s charter capital reached VND15.5 trillion.

After two months of listing on the southern exchange, Sabeco (SAB), the country’s biggest brewery company, boasted a net profit of nearly VND4.5 trillion, 22 per cent higher than its yearly target. Its share price doubled the debut day to touch VND215,400 a share on Thursday, being the most expensive nationwide.

In terms of growth rate, steelmaking and real estate companies were the leaders thanks to strong recovery of the real estate market in the last quarter of 2016.

Pomina Steel Corp (POM) made a net profit of VND301 billion, an 11-fold increase over the previous year. Nam Kim Steel (NKG) and Hoa Sen Group (HSG) also reported yearly growth of 312 per cent and 130 per cent, respectively.

Hoa Phat Group (HPG) posted a record profit of VND6.6 trillion, up 89 per cent year-on-year and double its yearly target.

Hòa Binh Construction & Real Estate Corp (HBC) saw its profits rise 585 per cent year-on-year to VND490 billion, while Novaland Investment Group (NVL) earnings jumped 274 per cent to nearly VND1.7 trillion.

In the oil and gas industry, the biggest listed stock PV Gas (GAS) reported a net earning of nearly VND7.1 trillion, the second biggest earner in 2016 after Vinamilk, but this number was 17 per cent lower than its 2015 result.

Where to invest in 2017?

“These impressive figures are creating new energy for the market to grow,” Nguyen Duc Hung Linh, head of analysis and investment consultancy for Saigon Securities Inc, told the Finance-Business News on VTV1 channel.

The benchmark VN-Index on the HCM Stock Exchange stepped over the resistance 710 points on Wednesday, the highest since February 21, 2008 and a rally of over 7 per cent compared to December 30, 2016.

In 2017, analysts suggest investors pay attention to the stocks which may benefit from Government policies.

“Investors can consider the businesses or industries benefiting from policy as these companies often have outstanding business results,” Linh said and noted the example of construction and real estate firms, which have picked up in the past two years thanks to policy support.

The current policy focuses on infrastructure development in order to lay a solid foundation for economic growth in the coming years and this could be a favourable condition for the strong growth of the real estate sector, he said. 

VNS