Rebounding business activities and the previous year's low base helped the total net profit of Vietnam’s listed companies in the fourth quarter of 2023 increase by more than 30% year-on-year, according to leading broker VNDirect Securities.
In its freshly released report on the Q4/2023 profits of listed companies, VNDirect said as of February 5, 1,128 companies having shares listed on the Ho Chi Minh Stock Exchange (HoSE), the Hanoi Stock Exchange (HNX) and the Unlisted Public Companies Market (UPCoM) had published their financial statements for Q4/2023.
Steel and banking were the top growth contributors. Steel producers continued to have a positive business season, recording profits from losses in the same period the previous year. Their total net profit increased by 26.7% quarter-on-quarter.
This improvement came from an increased gross profit margin thanks to reduced input costs, better inventory management and improved sales.
The banking group's net profit in the last three months of 2023 expanded 22.5% year-on-year thanks to accelerated credit, a sharp increase in non-interest income (income from fees and foreign exchange activities), and a 5% drop in provisioning expenses.
Real estate firms’ net profit in Q4/2023 fell nearly 20% year-on-year and more than 24% compared to Q3.
The decline mainly came from revenue and profit of giant Vinhomes (VHM), falling 72% and nearly 91% respectively over the same period in 2022, due to the high bases of the previous year. Its 2023 net profit grew by about 15%. If VHM was excluded, listed real estate firms’ net profit soared nearly 132% year-on-year.
Electricity and retail remained under pressure. The electricity industry’s profit dropped nearly 33% due to low output from hydroelectric plants as a result of the El Nino phenomenon, and low coal-fueled power production as many turbines faced troubles.
Retailers also recorded a sharp decrease in profit due to fierce price competition between large companies. However, thanks to signs of recovery in demand, this industry's profit grew nearly 43% compared to Q3.
The broker said the expectation of listed companies’ positive results in the final quarter was the driving force behind the Vietnam stock market's recovery after a strong sell-off in Q3.
Closing 2023, the VN-Index, which represents the HoSE, stood at 1,129.93 points, an increase of nearly 123 points or over 12% compared to the beginning of the year.