TMT closed September 13's trading at 5,800 VND (0.25 USD) per share, down 37 percent from the beginning of the year(Photo: cafef.vn)
Hanoi (VNS/VNA) -Automobile stocks are expected to lure more investment thanks to the growth ofmarket consumption, forecast to reach over 500,000 vehicles per year from 2021.
On thestock market, shares of TMT Motors Corporation (TMT), a prominent importer andassembler in the capital city, closed September 13’s trading at 5,800 VND (0.25USD) per share, down 37 percent from the beginning of the year. TMT hasexperienced a significant decline over the past four years.
TMT recordedan all-time peak of over 59,300 VND per share in October 2015, then plunged toits current value. The stock liquidity was also low, with only a few thousandunits matched each session.
The slumpof the TMT stock price is attributed to negative business results. In the firstsix months of 2019, TMT recorded revenue of 734 billion VND (31.4 million USD),up 6.8 percent.
However,the company suffered a loss of 5.9 billion VND due to higher costs of goodssold, up by 192 billion VND, equivalent to an increase of 120 percent. Sellingexpenses rose by over 8 billion VND, equivalent to 106 percent.
TMT alsosaw a loss of 10.6 billion VND in the same period of 2018.
With GGGstock of Giai Phong Automotive Joint Stock Company, the situation is evenworse.
Sinceearly this year, GGG has witnessed few transactions, reaching only some 1,000units per session, if any. The highest price that GGG achieved this year was 2,200VND per share, in June.
GGG hitthe daily limit decline of 7 percent on September 13, closing at 1,200 VND pershare.
GGGrecorded a loss of 9.8 billion VND in 2018 and 7.2 billion VND in 2017.
Let alonethe poor performers, automobile companies with positive business results havenot received much attention from investors either.
Forexample, at the end of the first half of 2019, Truong Long Auto & TechnologyJoint Stock Company (HTL) reported a pre-tax profit of 18.1 billion VND, up by11 times over the same period of 2018 thanks to an increase in consumption.
HTLshares lacked resilience, currently fluctuating around the threshold of 17,000-18,000VND per share.
From thebeginning of the year, HTL has recorded an increase of about 10 percent.Liquidity remained very low, with the average matched the volume of 10 sessionsbeing only some 1,000 shares per session.
Hang XanhMotors Service Joint Stock Company (HAX) closed September 13 at 19,450 VND pershare, up 21.4 percent compared to the beginning of the year.
However,the liquidity fluctuated and was generally low. The average matched volume inthe most recent 10 sessions was about 24,000 shares per session.
In the first6 months, HAX achieved 2.4 trillion VND in revenue, up 9.43 percent over thesame period of 2018. Pre-tax profit was 38.7 billion VND, down 16.8 percentmainly due to increased competition.
In aninterview with Dau Tu Chung Khoan (Securities Investment) newspaper, arepresentative of HAX said the number of distributed vehicles had risen sharplysince the beginning of September and this is likely to continue until the endof this year, thereby helping the company improve sales and profits.
In a recentreport, FPT Securities (FPTS) recommended that investors pay attention to HAXbecause its Mercedes’ sales would rise as the middle and upper classes in Vietnamare increasing in size.
With the EU-VietnamFree Trade Agreement (EVFTA) coming into force, import taxes on cars and carparts from Europe will be reduced, making Mercedes’ prices more competitive.
HAX isalso expanding the popular Nissan vehicle segment to diversify its products.
The automarket of Vietnam boasts huge growth potential from now to 2025, according tothe Industrial Policy and Strategy Institute (IPSI).
Theinstitute forecast the consumption scale of Vietnam’s automobile market isforecast to reach over 500,000 vehicles per year from 2021 onwards.
Thedomestic auto manufacturing industry will grow by about 18.5 percent annuallybetween 2018 and 2025 and 13.8 percent between 2025 and 2035, raising the caroutput to nearly 531,600 units by 2025 and 1.76 million units in 2035.
With thegrowing middle class, car sales are set to respectively rise by 22.6 percenteach year from now to 2025 and 18.5 percent in the following years.
Accordingly,Vietnam’s population was estimated at over 96 million at the end of 2017. Thisfigure is expected to rise to 98.2 million by 2020, 101.1 million by 2025 and107.8 million by 2035.
Per capitaGDP in the country was 53.5 million VND (2,385 USD) in 2017, which willincrease by 6.8 percent annually to 7,780 USD by 2035. More than half of theVietnamese population will enter the global middle class by 2035 with the averagedaily spending of at least 15 USD.
Expectinghuge potential in the automobile market, many firms have moved into this field,such as local Vingroup with the recent launch of automobile brand Vinfast.
Phu NhuanService JSC (Maseco) has also participated in the automotive business afterexiting the Ariang electronic product distribution channel./.
On thestock market, shares of TMT Motors Corporation (TMT), a prominent importer andassembler in the capital city, closed September 13’s trading at 5,800 VND (0.25USD) per share, down 37 percent from the beginning of the year. TMT hasexperienced a significant decline over the past four years.
TMT recordedan all-time peak of over 59,300 VND per share in October 2015, then plunged toits current value. The stock liquidity was also low, with only a few thousandunits matched each session.
The slumpof the TMT stock price is attributed to negative business results. In the firstsix months of 2019, TMT recorded revenue of 734 billion VND (31.4 million USD),up 6.8 percent.
However,the company suffered a loss of 5.9 billion VND due to higher costs of goodssold, up by 192 billion VND, equivalent to an increase of 120 percent. Sellingexpenses rose by over 8 billion VND, equivalent to 106 percent.
TMT alsosaw a loss of 10.6 billion VND in the same period of 2018.
With GGGstock of Giai Phong Automotive Joint Stock Company, the situation is evenworse.
Sinceearly this year, GGG has witnessed few transactions, reaching only some 1,000units per session, if any. The highest price that GGG achieved this year was 2,200VND per share, in June.
GGG hitthe daily limit decline of 7 percent on September 13, closing at 1,200 VND pershare.
GGGrecorded a loss of 9.8 billion VND in 2018 and 7.2 billion VND in 2017.
Let alonethe poor performers, automobile companies with positive business results havenot received much attention from investors either.
Forexample, at the end of the first half of 2019, Truong Long Auto & TechnologyJoint Stock Company (HTL) reported a pre-tax profit of 18.1 billion VND, up by11 times over the same period of 2018 thanks to an increase in consumption.
HTLshares lacked resilience, currently fluctuating around the threshold of 17,000-18,000VND per share.
From thebeginning of the year, HTL has recorded an increase of about 10 percent.Liquidity remained very low, with the average matched the volume of 10 sessionsbeing only some 1,000 shares per session.
Hang XanhMotors Service Joint Stock Company (HAX) closed September 13 at 19,450 VND pershare, up 21.4 percent compared to the beginning of the year.
However,the liquidity fluctuated and was generally low. The average matched volume inthe most recent 10 sessions was about 24,000 shares per session.
In the first6 months, HAX achieved 2.4 trillion VND in revenue, up 9.43 percent over thesame period of 2018. Pre-tax profit was 38.7 billion VND, down 16.8 percentmainly due to increased competition.
In aninterview with Dau Tu Chung Khoan (Securities Investment) newspaper, arepresentative of HAX said the number of distributed vehicles had risen sharplysince the beginning of September and this is likely to continue until the endof this year, thereby helping the company improve sales and profits.
In a recentreport, FPT Securities (FPTS) recommended that investors pay attention to HAXbecause its Mercedes’ sales would rise as the middle and upper classes in Vietnamare increasing in size.
With the EU-VietnamFree Trade Agreement (EVFTA) coming into force, import taxes on cars and carparts from Europe will be reduced, making Mercedes’ prices more competitive.
HAX isalso expanding the popular Nissan vehicle segment to diversify its products.
The automarket of Vietnam boasts huge growth potential from now to 2025, according tothe Industrial Policy and Strategy Institute (IPSI).
Theinstitute forecast the consumption scale of Vietnam’s automobile market isforecast to reach over 500,000 vehicles per year from 2021 onwards.
Thedomestic auto manufacturing industry will grow by about 18.5 percent annuallybetween 2018 and 2025 and 13.8 percent between 2025 and 2035, raising the caroutput to nearly 531,600 units by 2025 and 1.76 million units in 2035.
With thegrowing middle class, car sales are set to respectively rise by 22.6 percenteach year from now to 2025 and 18.5 percent in the following years.
Accordingly,Vietnam’s population was estimated at over 96 million at the end of 2017. Thisfigure is expected to rise to 98.2 million by 2020, 101.1 million by 2025 and107.8 million by 2035.
Per capitaGDP in the country was 53.5 million VND (2,385 USD) in 2017, which willincrease by 6.8 percent annually to 7,780 USD by 2035. More than half of theVietnamese population will enter the global middle class by 2035 with the averagedaily spending of at least 15 USD.
Expectinghuge potential in the automobile market, many firms have moved into this field,such as local Vingroup with the recent launch of automobile brand Vinfast.
Phu NhuanService JSC (Maseco) has also participated in the automotive business afterexiting the Ariang electronic product distribution channel./.
VNA
