Earnings results bring big smiles to investors

Vietcombank is the biggest profit earner in the banking sector

Listed firms are reporting encouraging 2010 earnings results with investors sniffing out bargains.

VIR statistics show that as of April 13, there were 568 listed firms, accounting for 85.16 per cent of the total 667 ones on the Ho Chi Minh Stock Exchange (HoSE) and Hanoi Stock Exchange (HNX), having released 2010 financial statements, in which only eight and 14, on the respective bourses, incurred losses.

Some 321 firms have reached 100 per cent of their 2010 earnings goals.

The most exciting result was PetroVietnam Southern Gas (PGS) with an after-tax profit of VND278.8 billion ($13.5 million), equivalent to 12 folds of its yearly plan. Vincom  (VIC) with VND2,432 billion ($117.5 million), completing 961 per cent of early plan.

For the top 10 biggest earners in term of profitability number, Vietcombank (VCB) ranked first with a VND4,200 billion ($203 million) after-tax profit, followed by Vinamilk (VNM), Vietinbank (CTG), Vincom (VIC), Asia Commercial Bank (ACB), Masan Group (MSN), Hoang Anh Gia Lai (HAG), Eximbank (EIB), DPM, FPT with VND3,615 billion, VND3,433 billion, VND2,432 billion, VND2,339 billion, VND2,283 billion, VND2,248 billion, VND1,818.9 billion, VND1,706.9 billion and VND1,691 billion, respectively.

Of these firms, several have price to earnings (P/E) ratios below 10 and some even have price to book value (P/B) ratios below 1, while others are very attractive in terms of potential. 

Of the 20 biggest earners on Vietnam’s stock market, the average returns on equity (ROE) was 25.4, particularly VIC with 51.8, VNM 37.6, FPT 35.8, MSN 33.4 and HAG 30.2, according to Tan Viet Securities Incorporated statistics.

Among these 20 ones, 10 firms paid 2010 dividends in cash, averaging 15.7 per cent, with VNM 30 per cent, HPG and PVD 20 per cent and ACB 17 per cent a share. 

For valuations, shares of Saigon Securities Incorporated plunged 51.22 per cent on-year, POM fell 51.2 per cent, PVX decreased 50.3 per cent, which is attractive as these stocks’ fundamentals are strong.