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Vietnamese businesses set mixed targets for 2021

Vietnamese businesses set mixed targets for 2021
GELEX expect its profit to double this year after the merger with Viglacera. Photo

HÀ NỘI — After performing well last year despite the COVID-19 pandemic, many companies have prepared new plans for 2021. While some firms, such as GELEX, have doubled their targeted profits, others which reported good results in 2020 have lowered their expectations.

Mixed expectations

In a report after the general meeting of shareholders held at the end of December, Viet Nam Electrical Equipment Joint Stock Corporation (GELEX) stated that its revenue in 2021 is forecasted at VNĐ33 trillion, with a profit of VNĐ1.8 trillion, doubling the profit targets of 2020.

The optimistic target is partially based on the planned merger with Viglacera Corporation (VGC).

Last year, the company posted an increase of 21.3 per cent year-on-year to VNĐ4.8 trillion in revenue in the third quarter, but the profit before tax decreased by 18.1 per cent to VNĐ262 billion and the profit after tax also fell by 13.3 per cent to VNĐ218.4 billion.

In the first eleven months of 2020, profit after tax was at VNĐ640.9 billion, down nearly 8 per cent year-on-year.

Even with many uncertainties ahead, Hoa Sen Group (HSG) still expects an increase in net revenue of 20 per cent year-on-year to VNĐ33 trillion in 2021, and profit after tax is forecasted to rise 30 per cent to VNĐ1.5 trillion, which is the highest level since 2016, according to its report after the general meeting of shareholders.

The third-quarter results showed HSG earned VNĐ8.4 trillion in revenue, up 32.7 per cent year-on-year, while profit after tax also increased by 436.2 per cent to VNĐ450 billion. The company reported a surge of 218.8 per cent in profit after tax to VNĐ1.1 trillion in the first eleven months of last year.

Other companies also set higher targets for this year, including Petrosetco (PET) up 36 per cent year-on-year in profit before tax; and Sao Vang Rubber Joint Stock Corporation (SRC) up 20 per cent year-on-year in profit before tax.

On the other hand, Dabaco Group (DBC), which witnessed good performance last year due to higher pork prices, expects that its revenue will decrease by 11 per cent year-on-year to VNĐ15.4 trillion in 2021, and profit after tax is forecast at VNĐ827 billion, down 41 per cent.

In the third quarter of 2020, the company posted revenue of VNĐ2.6 trillion, up 40.4 per cent year-on-year, and profit after tax increased nearly 15 times to VNĐ287 billion. As of September 30, its profit after tax was VNĐ1.13 trillion, more than 24 times compared to last year.

The company estimated its profit after tax in 2020 at VNĐ1.4 trillion, the highest level since DBG started business.

Similarly, Đạm Phu Mỹ Packaging Joint Stock Company (PMP) and Petro Viet Nam Ca Mau Fertilizer JSC (DCM) see their profits falling in 2021, with a decrease of 48 and 68 per cent year-on-year, respectively, in profit before tax.

Utilising low-interest rates

With the current low rates and stable exchange rate environment, many firms are expected to take out more loans to expand activities.

Besides the merger with VGC that is expected to be completed in the second quarter, GELEX is negotiating with its Japanese partner to acquire and control Đong Anh Electronic Equipment Corporation. It will also spend more on financial restructuring, GELEX Electronic and buying raw materials.

PetroVietnam Power Corporation (POW) is also expected to start the Nhơn Trạch 3 and Nhơn Trạch 4 projects in the first quarter of this year. The two projects are valued up to VNĐ1.4 billion. — VNS

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