Non-financial firms expected to see strong growth in second half

Impressive earnings performance

The second quarter earnings season for listed companies has concluded, with the overall market's post-tax profit rising by 26 per cent year-on-year.

Data from FiinGroup indicates that the main growth driver came from non-financial firms, whose profits surged by 32.9 per cent. Key contributors to this growth were sectors showing significant recovery, such as steel, aviation, telecommunications, fertilizers, and retail.

The real estate sector, in particular, saw profit growth mainly due to wholesale project sales and financial income.

Vingroup-related companies made the largest contribution to the profits of non-financial firms. Notably, Vinhomes JSC reported a post-tax profit attributable to non-controlling interests of over VND 11.7 trillion in the first half, topping the list.

Despite maintaining its market-leading position, Vinhomes' profit fell by 46 per cent year-on-year, primarily due to recording a major project sale at Vinhomes Royal Island in Haiphong and delivering on existing projects.

Vingroup JSC and Vincom Retail also posted significant profits. However, despite Vingroup reporting a profit of over VND 4.5 trillion, its actual post-tax profit was only around VND 2 trillion after accounting for non-controlling interest losses, placing it 10th in the rankings.

Vincom Retail ranked ninth with a profit of over VND 2.1 trillion, up 3.9 per cent from the same period last year.

Elsewhere, Hoa Phat Group posted an after-tax profit of nearly VND 6.2 trillion, marking a 3.3-fold increase year-on-year, placing it second in the rankings.

PetroVietnam Gas JSC ranked third with revenue exceeding VND 53.3 trillion and a profit of VND 5.8 trillion, down 10 per cent year-on-year but still surpassing its full-year 2024 profit target.

Another oil and gas firm, Petrolimex, came in eighth with a profit of VND 2,272 billion, up nearly 60 per cent from the previous year.

Vietnam Airlines made a surprising return to profitability, reporting a profit of over VND 5.268 billion, ranking fourth, after recording a loss of nearly VND 1.4 trillion in the same period last year. This turnaround was largely driven by a recovery in its air transport business and a one-off income of VND 3.6 trillion from aircraft return negotiations.

Vinamilk secured the fifth spot with an after-tax profit of VND 4.9 trillion, up 20 per cent year-on-year. FPT Corporation recorded a profit of VND 3,671 billion, up 22.3 per cent year-on-year, placing it sixth.

Sabeco also featured in the list, ranking eighth with a profit of VND 2,245 billion, up 5.6 per cent from the same period last year.

Continued growth expected in H2

FiinGroupforecasts that post-tax profit growth will remain robust in the third quarter, driven by a low base comparison from the same quarter last year.

The recovery trend is progressing positively across several non-financial sectors. With consumer demand expected to recover more strongly and profit margins likely to expand further due to effective cost control, the growth outlook for the second half remains favorable for most industries.

FiinGroup predicts that post-tax profit growth in the second half could exceed 20 per cent, as the recovery trend continues among non-financial firms.

Viet Dragon Securities Corporation (VDSC) expects profit growth to accelerate sharply in the second half, with an estimated year-on-year surge of around 25 per cent.

Amid a favorable monetary policy environment, non-financial companies are expected to maintain strong profit growth, particularly in consumer goods, steel, industrial zones, and seafood sectors.

VDSC also noted that the textile and garment sector could become more attractive to investors if stock prices see significant corrections during market adjustments, given the positive profit outlook for this industry.