74 HNX-listed companies report higher losses in H1

Tuesday, Aug 25, 2020 07:05

The bull statue at the Ha Noi Stock Exchange (HNX) main office building. — Photo vietnamfinance.vn

Seventy-four of 348 companies listed on the Ha Noi Stock Exchange (HNX) posted losses in the first six months of the year.

Of the total number of listed companies, 343 firms have released their second-quarter earnings reports while the other five have not.

The number of loss-making firms was up 34.5 per cent year-on-year and their total losses increased by 32.9 per cent year-on-year to VND711.9 billion (US$30.8 million), according to HNX.

Real estate firms posted a 341 per cent surge in total losses for the first six months.

Total losses recorded by the HNX-listed property developers were VND121.3 billion, up 341 per cent year-on-year from last year’s figure of VND27.5 billion.

According to the northern market regulator, companies in six of 11 sectors reported higher losses in the first six months.

Other loss-making sectors included mining and energy, oil and gas, and logistics and transportation with losses increasing by 225 per cent and 214 per cent, respectively.

Most of the companies blamed the COVID-19 pandemic for their losses as they had to halt operations and purchasing power declined due to lower income.

On the other hand, nearly 270 listed companies made profits in January-June. But their total profit slid 1.14 per cent year-on-year to VND11.38 trillion in the first six months.

Five sectors saw companies raise their profits, including financials. Profits financial firms gained 11.7 per cent year-on-year to VND605.8 billion.

Notably, trading, accommodation and eatery firms recorded the biggest gain in profit (56.8 per cent) but only 17 of all 48 companies in the sector saw their profits increase.

A key contribution to the firms’ increased profits was their divestments from non-core business activities. — VNS

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