Bright spots amid the gloom

Leading firms FPT Corp. (FPT), Hoa Phat Group (HPG) and Tien Phong Plastic (NTP) estimated big second quarter profits amid the gloomy outlook of local enterprises’ business results.

FPT’s before-tax profit in 2011’a first six months grew 11 per cent to VND1.2 trillion ($57.97 million), helped by revenue hitting VND12.19 trillion ($588.89 million). That higher-than-expected result prompted the technology giant to increase its annual growth target to 30 per cent from 20 per cent.

With current earnings-per-share standing at VND3,682, FPT’s general director Truong Dinh Anh said the directors was trying to raise that ratio to VND8,300 by this year’s end.

In the long-term, FPT’s management wants to boost profits by four-fold within 2011-2014.

The general director said his company was largely saving operation costs by collecting back cash investments in affiliates and sharply cutting back-office operation expenses.

The technology firm is looking in new sectors like mobile telecommunication, online communications, social network, games in both home and overseas market like Laos, Cambodia and African nations.

“FPT’s wages and bonus policies are being adjusted in accordance with our top priority of expanding new products, new markets, new technologies and new revenue flows,” said Anh.

Hoa Phat Group announced it had reached 55 per cent this year’s profit target. Its profit reached VND1.03 trillion ($49.76 million) in the first six months, with second quarter’s after-tax profit and revenue reaching VND474 billion ($22.89 million) and VND4.57 trillion ($220.77 million) respectively.

Tien Phong Plastic’s first half year gross profit hit VND203 billion ($9.8 million) out of annual plan of VND366 billion ($17.68 million). Revenue was VND1.18 trillion ($57 million).

Tien Phong Plastic’s chairman Tran Van Phuc said his company’s current debt was of some VND327 billion ($15.79 million), of which some VND300 billion ($14.49 million) was borrowed at U.S. dollar.

However, managements of those companies also expect an even more difficult conditions within the second half of the year, with inflation accelerating, government continuing its tightening money policies and global input prices strongly fluctuating. – VIR

Tags: Vietnam companies, Vietnam enterprises, Vietnam SMEs