Hanoi (VNS/VNA) ꦑ- Profits of listed companies in Vietnam experienced robust growth in the fourth quarter (Q4) of 2024, marking the fifth consecutive quarter of growth.
As of February 7, 1,072 listed companies on the stock exchanges have disclosed their Q4 2024 business results.
Reports from VNDirect Securities Corporation showed that the combined net profits of these companies increased by 27.8% year-on-year and by 13.4% from the previous quarter.
The profit growth was primarily driven by positive effects from 2023 and the strong recovery of key industry sectors. According to experts from VNDirect, the telecommunications, retail and personal consumer goods sectors showed the strongest growth rates.
The telecommunications industry recorded an impressive profit growth of 261.9% year-on-year, with significant contributions from companies like Viettel Global (VGI), which saw a 723% increase in net profit thanks to digital transformation initiatives.
The personal consumer goods sector achieved a profit growth rate of 154.7% year-on-year, driven by increased export demand to mitigate tariffs from the US President Donald Trump administration, while the retail sector also reported a profit gain of 125.4% over the same period, benefitting from recovering consumer demand.
The real estate sector demonstrated substantial growth as the overall net profits soared by 70.1% year-on-year.
Vinhomes (VHM) experienced a striking 1,297% profit increase, attributed to the completion of the major Royal Island project in HaiPhong city. Other companies like Khang Dien House (KDH), Phat Dat Real Estate (PDR), Dat Xanh Group (DXG) and Nam Long (NLG) also recorded significant profit growth figures.
However, not all sectors reported positive outcomes.
The oil and gas industry was heavily impacted by an 8% drop in oil prices, leading to a 65.4% decline in overall industry profits. Binh Son Refining and Petrochemical Company (BSR) recorded a loss of 90 billion VND (3.5 million USD), marking the second consecutive quarter of negative profits.
The earnings of large-capitalisation companies played a significant role in the market's overall profitability, whereas smaller-capitalisation companies witnessed a decline in profits.
According to VNDirect's analysis, the net profits of large-cap companies outperformed those of mid-cap and small-cap companies in Q4 2024, reversing the trend seen at the beginning of the year.
In the VN30 group, which tracks the 30 biggest companies in terms of market cap, net profits for Q4 2024 increased by 20% year-on-year, with 19 out of 30 companies showing growth.
Leading the profit growth were companies like VHM, Masan Group (MSN), Mobile World Investment Corporation (MWG), Tien Phong Commercial Joint Stock Bank (TPB) and Saigon Hanoi Commercial Joint Stock Bank (SHB).
Gross profit margins saw a slight increase during this period, with significant contributions from the chemical industry.
Despite rising borrowing costs, leverage ratios continued to climb due to robust credit demand. The surge in borrowing costs reached its peak in Q4, reflecting the increased business credit demand amid economic recovery and rising interest rates, said Nguyen Ngoc Hieu, analyst at VNDirect.
Debt costs increased to 6.5%, representing a 0.5% rise from the previous quarter. The debt to equity ratio rose to 74.6% in Q4, up from 74% at the end of Q3 2024./.
