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FPT posts 9.9 million USD third-quarter profit
The Corporation for Financing and Promoting Technology (FPT) expects 2007 earnings to exceed initial forecasts after reporting a third quarter profit of 9.9 million USD, up 39.26 percent year-on-year.
From January to September, the country’s leading information technology company generated 566 million USD in revenue and 41 million USD in profit, meeting 83 percent of the 2007 target. For the nine months, profit is up 96 percent.
“With the current business performance, we believe the company’s earnings results by year-end will exceed the target,” said Hoang Minh Chau, FPT deputy chairman.
Core business operations, such as selling mobile phones and other IT products, contributed to 98.5 percent of revenue. “The large proportion proves that we have not diversified too aggressively away from out traditional revenues streams,” said Chau.
For the past few months, investors have voiced concern that large companies like FPT and Refrigeration Electrical Engineering are spreading their limited capital resources too thinly by investing into other industries, such as property, equity trading and banking.
FPT has recently announced plans to expand in all three.
“However, we hope new operations in the financial sector will contribute more to the company’s overall earnings year by year, and possibly make up between 20 to 30 percent of FPT’s profit in the next five years,” said Chau.
FPT established a securities company on July 13 and is awaiting approval from the State Bank of Viet Nam to set up a bank.
FPT’s earnings share for the nine months is 4,957 VND, up 22 percent.
On the Ho Chi Minh City Stock Exchange, FPT on Oct. 22 closed at 272,000 VND, down 1.09 percent.
Dinh The Anh, an analyst with Sai Gon Securities Inc, said investors were slow to react to FPT’s earnings results, hence Oct. 22’s decline. In addition, the market is currently dominated by ever-changing investor sentiment, rather than fundamentals.
VNA
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