Several listed companies want to adjust their business targets for this year with the end of 2018 approaching.

Phuong Nam Cultural JSC (HOSE: PNC) is seeking shareholders’ approval to boost its net profit target for 2018 to VND162.3 billion (US$6.2 million) from VND20 billion. As a result, the company is expected to make up for the accumulative loss and gain a profit of VND38.7 billion.

However, its total revenue target will be adjusted down to VND741 billion from VND800 billion.

Ending June, the company earned VND337 billion net revenue and VND7.8 billion net profit. The basis for such a strong adjustment was PNC’s sale of 20 per cent of CJ CGV Vietnam Co Ltd, which operates Viet Nam’s biggest cinema chain CGV.

Earlier, PNC sold 12.5 per cent of CJ CGV’s stakes for VND160 billion. It plans to spin off the remaining 7.5 per cent stake for another VND101 billion by year’s end. The proceeds from this sale will be used to pay debt, supplement working capital and pay dividends.

Animal feed manufacturer Dabaco Group (HNX: DBC) is also planning to increase its profit target after the company expected its nine-month net profit will accomplish the yearly goal of VND246 billion.

In the review meeting for third-quarter business results, the company’s management board said such an achievement came from the production of animal feed, livestock and poultry breeding. Recently, prices of animal products, especially pork prices, have remained high, so livestock farmers and businesses are profitable.

The company has also decided to increase its dividend rate to a maximum 20 per cent for this year’s performance, 10 per cent higher than the previously approved plan.

Revise downward

Also in food manufacturing, An Giang Agriculture and Foods Import-Export JSC (UPCoM: AFX) asked for shareholders’ approval to cut its revenue projection by 12 per cent to VND1 trillion and net profit down 60 per cent to VND6 billion.

The company attributed the move to the poor conditions in the feed sector.

It posted revenue of VND415 billion and net profit of just VND661 million in the first six months of this year, equivalent to 37 per cent and 4 per cent of initial revenue and net profit targets.

Financial firm Ocean Group (HOSE: OGC) also revised down its consolidated revenue target from VND1.93 trillion to VND1.17 trillion and after-tax profit target from VND186 billion to VND58 billion, decreases of 15.8 per cent and 69 per cent, respectively.

Despite such the reduction, analysts predict it will be hard for the company to achieve these targets as it incurred additional losses of VND9.5 billion in the first half of this year.

Ending June, it had suffered cumulative losses of nearly VND2.9 trillion, almost equivalent to its charter capital of VND3 trillion.

Listing at the end of last year with a net profit of VND160 billion, Apax Holdings (HOSE: IBC) made an unexpected move when adjusting its net profit goal down 14 per cent from VND92 billion to VND79.6 billion.

Such numbers are also forecast to be tough to accomplish with poor performance in the first six months. Ending June, the company posted net profit of VND11 billion.

Business plans are built based on market forecasts but companies can change their targets. Despite that, any revised downward plans in the last months of the year will disappoint investors and may affect their share prices. – VNS