HÀ NỘI — The Vietnamese corporate landscape painted a complex picture for investors in the first quarter of 2025.

While many companies reported growth in revenues, a notable number also experienced significant declines in net earnings.

This divergence raises critical questions about the correlation between corporate profitability and stock prices, particularly in a market increasingly influenced by broader economic trends.

As of April 21, a total of 170 companies listed on the Hồ Chí Minh Stock Exchange (HoSE) and the Hà Nội Stock Exchange (HNX) disclosed their earnings for Q1.

The results showed that only 15 companies reported losses, with a cumulative deficit exceeding VNĐ145 billion (US$5.6 million).

However, more alarmingly, 62 companies, over 36 per cent of those reporting, experienced a decline in profits compared to the same quarter in the previous year.

Take PetroVietnam Low Pressure Gas Distribution JSC for instance. The firm saw its net profit plummet from VNĐ36.8 billion in Q1 2024 to a mere VNĐ13.5 billion in Q1 this year.

It explained that its industrial clients, especially those in the real estate sector, faced challenges in product consumption, which stunted revenue growth.

Despite a modest 11.6 per cent increase in sales, rising costs resulted in a sharp decline in profitability.

This trend is not unique.

Da Nang Rubber JSC reported a 22 per cent rise in revenue to over VNĐ1.2 trillion, yet its net profit fell dramatically by 81 per cent to VNĐ9.5 billion, primarily due to surging raw material costs.

Similarly, Phả Lại Thermal Power JSC saw its net profit drop 67 per cent to VNĐ52.3 billion, with sales revenues decreasing by 23 per cent.

The securities sector has not been immune to these trends. Firms like Thiên Việt Securities and Việt Dragon Securities reported net profit declines of 94 per cent and 85 per cent, respectively.

The downturn in trading activity and rising operational costs significantly affected their financial results.

Additionally, VNDirect Securities Corporation experienced a 40 per cent drop in net profit, further illustrating the challenges this sector faces amid fluctuating market conditions.

Interestingly, the stock market as a whole performed positively during Q1. However, despite this upward trend, the financial performance of most securities companies has been disappointing.

Lack of stock price reaction

Despite these significant declines in earnings, the stock prices of many companies have not respondedas as expect.

In fact, numerous stocks were already declining prior to the profit announcements, suggesting that the market had preemptively priced in some of this downturn.

The broader market faced pressures starting in early April, largely due to concerns surrounding US trade policies and their potential impact on the economy.

Similarly, companies that reported strong profit growth also found their stock prices languishing, moving in accordance with overall market trends rather than their individual performance.

For example, Nam Việt Corporation (ANV) declared a remarkable net profit of VNĐ132 billion for Q1, nearly eight times that of the previous year. 

However, despite this impressive growth, ANV's stock price continued to fall, reflecting a broader market sentiment rather than the company’s solid financial performance. 

Thủ Dầu Một Water JSC also reported a net profit nearly four times higher than in the previous year, yet its stock performance remained stagnant.

In the industrial real estate sector, Sonadezi Châu Đức JSC reported a net profit of over VNĐ126 billion, doubling its earnings from the same period last year and achieving 42 per cent of its annual target. 

This growth was driven by mỏe than VNĐ394 billion in revenue from land leasing and management fees. 

However, due to negative impacts from US tariffs, its stock price has dropped by 28 per cent since early April.

In the steel sector, Hoa Sen Group saw its stock price decline by over 23 per cent despite reporting a net profit of VNĐ165 billion, a 60 per cent increase year-on-year. 

This decline follows the US Department of Commerce's preliminary decision on April 4 regarding anti-dumping investigations, with HSG facing a tax rate of up to 59 per cent.

Other companies, including China Steel & Nippon Steel Vietnam, Hoà Phát Steel and Nam Kim Steel, are facing tax rates of 49.42 per cent, while some Vietnamese steel companies may face rates as high as 88.12 per cent. 

This has significantly affected the performance of steel-related stocks. — BIZHUB/VNS