Hoa Phat leads “one-trillion-dong profit club”

Thursday, May 13, 2021 08:39

Steel production line at Hoa Phat Group's Hai Duong Steel Joint Stock Company. Hoa Phat led the "one-trillion-dong profit club” for January-March. — VNA/VNS Photo Danh Lam

Twenty-two companies have entered the “one-trillion-dong profit club” for January-March, despite the economy being ravaged by the COVID-19 pandemic.

Leading the group is steelmaker Hoa Phat Group (HPG), replacing the former champion of Q1 last year – residential real estate firm Vinhomes JSC (VHM).

Hoa Phat Group (HPG), for the first time, surpassed many other local large corporations such as Vinhomes (VHM), Vietcombank (VCB) and VietinBank (CTG) with more than VND7 trillion (US$302.9 million) in post-tax profit in the first quarter of 2021, tripling the profit achieved in the first quarter of last year.

This is also the 7th consecutive quarter that Hoa Phat has witnessed profit growth compared to the previous quarter. HPG share prices have also increased strongly by 52 per cent since the beginning of 2021.

Hoa Phat was followed by Vietcombank (VCB) and VietinBank (CTG). Vinhomes, after many quarters of being in the top position, suddenly slid to 4th place with VND5.48 trillion in post-tax profit, down 28 per cent year-on-year.

Banks still accounted for the largest proportion in the club. From the first quarter of this year, the banking sector contributed 12 names. Many of them didn’t appear in the first quarter of last year.

In the banking group, the winner of Q1 this year was Vietcombank (VCB) with more than VND6.9 trillion in post-tax profit, climbing over 65 per cent compared to Q1 last year.

VietinBank (CTG) ranked second in the banking group with VND6.47 trillion in post-tax profit, up 169 per cent year-on-year. TechcomBank ranked third with VND4.48 trillion, more than doubling the figure of the same period last year.

Compared to the first quarter of last year, there were four new banks joining the “one-trillion-dong profit club”, including Vietnam International Bank (VIB) with VND1.45 trillion in profit after tax, an increase of 68 per cent year-on-year, and Ha Noi-Sai Gon Bank (SHB) with VND1.33 trillion in post-tax profit, an increase of 116 per cent compared to Q1, 2020.

TienphongBank (TPB) reported a 40.6 per cent increase in profit, reaching VND1.14 trillion. Ocean Bank (OCB) reported VND1.01 trillion, while in the same period last year, after-tax profit was VND886 billion.

In terms of ordinal numbers, the first quarter of this year witnessed many changes in the banking group.

VietcomBank still maintained the first position, but the second position was taken by Vietinbank (CTG) this year after Techcombank (TCB) held it last year.

Despite the impact of the COVID-19 pandemic, the banking sector saw strong growth in profits, of which the strongest increase belonged to ViettinBank (CTG) with a growth rate of 169 per cent. It was followed by Sai Gon-Ha Noi Bank (SHB) with 116 per cent and Military Bank (MBB) with 100 per cent.

On the stock market, Techcombank (TCB) shares rose 49 per cent from the beginning of the year, VPBank (VPB) increased 89 per cent, VIBank (VIB) gained 81 per cent, Asia Commercial Bank (ACB) rose 28 per cent and Sai Gon-Ha Noi Bank (SHB) was up 58 per cent.

There were also other familiar names that were regularly present in this prestigious club, including dairy company Vinamilk (VNM) with nearly VND2.6 trillion in after-tax profit, down 6 per cent year-on-year, PVGas (GAS) recording a profit after tax of more than VND2 trillion, down 12 per cent compared to last year.

IT company FPT and mobile retailer Mobile World Group (MWG) also joined the club. MWG gained VND1.3 trillion in after-tax profit, up 18 per cent year-on-year, while FPT reported a profit of VND1.15 trillion, up 23 per cent.

The rubber industry witnessed the participation of one member – the Vietnam Rubber Group (GVR) with VND1.21 trillion of post-tax profit, 3.6 times higher than the profit achieved in the first quarter of last year.

Engine and Construction Machinery Corporation (VEAM) announced a profit of VND1.45 trillion, up 9 per cent. Most of VEAM's profits come from its associates.

BInh Son Petrochemical Refinery (BSR) was among the most notable names. While it reported a loss of more than VND2.35 trillion in Q1 last year, it earned a profit of VND1.85 trillion in Q1 this year. This was also the 5th quarter in a row that Binh Son Refinery’s profit grew compared to the previous quarters. — VNS

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