Up to 86% of firms listed on HNX post Q1 profit growth
Eighty-six percent of firms listed on the Hanoi Stock Exchange (HNX) posted profits during the first quarter of this year, the northern bourse has announced.
According to the reports, 319 companies posted profits with a combined after-tax profit value of VND4.02 trillion (US$176 million) recorded in Q1, an increase of 13.3% over the same period last year.
However, 51 companies suffered losses totalling VND127.3 billion, a rise of 4% in the numbers of companies but a decline of 32.9% in loss value over the same period last year.
This means that HNX businesses achieved a net profit of VND3.89 trillion in the first quarter, up 15.9% year-on-year.
During Q1, 22 enterprises in the finance sector showed the best business results. Although the number of the finance companies accounted for only 7 percent of total profitable firms, they generated a combined profit of 1.35 trillion VND, up 47.2% against 2016 and accounting for 34% of all profit value.
Among the 22 mentioned firms, the Asia Commercial Bank (ACB) recorded post-tax profit of VND478 billion in the first quarter of 2017, a remarkable growth of 54% year-on-year. Meanwhile, the Sai Gon-Hanoi Joint Stock Commercial Bank (SHB) earned VND245 billion in Q1, up 0.3% against the same period of 2016.
Twelve real estate businesses were the runners-up with a combined profit of VND299.2 billion, up 83% year-on-year. Next were construction enterprises whose post-tax profits climbed by 35.8% year-on-year.
Of them, Vinh Phuc Infrastructure Development Joint Stock Company reported post-tax profit of VND34.09 billion, a surge of 369% year-on-year. During the period, C.E.O Investment Joint Stock Company obtained post-tax profits of VND35.97 billion, up 65% year-on-year.
The solid business results were attributed to favourable market conditions during Q1, with exciting trading activities. In addition, real estate and construction companies also strongly promoted the trading of real estate projects and related services.
Industrial companies accounted for the largest ratio among the losers, suffering a combined loss of VND40.2 billion, or 32% of all losses.
Sai Gon Cement Joint Stock Company (SCJ) suffered a loss of VND15.6 billion during Q1, triple the loss value of same period of 2016. The Petroleum Real Estate Joint Stock Company (PVL) reported a loss of VND2.1 billion, down 30% year-on-year.
Mineral, oil and gas enterprises were next with a loss value amounting to 21% of all losses.
They were followed by accommodation, restaurant and catering service businesses, which had a combined loss of VND17.7 billion.