|
Investors dig small caps in building, transportation
Size does matter – the smaller the better. That’s the first half news for the year from the building materials and transportation sectors.
Firms with small capitalization have posted healthy figures for the first six months of the year, while larger firms have suffered significant losses.
The hoarding of cement during the first six months of the year saw prices of construction materials soar, and cement and tile makers had a field day.
The retail market price of Ha Tien 1 (HT1) cement, the country’s biggest cement factory, rose 73 percent to a record level of VND86,000-90,000 for a 50-kilogram bag in May.
However, a government battling two-digit inflation refused to allow big names like Ha Tien 1, But Son and Bim Son to increase their prices based on the market.
While Ha Tien 1 announced a profit of VND100 billion (US$6 million), it also posted financial, sales and management expenditures of VND112.1 billion.
Its earning per share (EPS) was minus figures.
Bim Son and But Son posted tepid performances with EPSs of VND1.133 and VND599 respectively.
Meanwhile, small capped Sai Son announced a net income of VND81 billion, a year-on-year increase of 99.97 percent.
The company’s EPS in the first half was VND6,881 per share.
The face value of all shares listed in Vietnam is VND10,000.
While tile makers saw their expenditure increase by 20 percent, the market value of their products in the first six months of the year rose 50 percent.
Nhi Hiep’s after-tax profits rose 98.37 percent to VND7.6 billion ($458,000) and its EPS stood at VND5,301 per share.
The first half EPS of state-owned Viglacera subsidiaries – such as Viglacera Dong Trieu, Viglacera Ha Long 1, Viglacera Dong Anh, Viglacera Ba Hien and Viglacera Tu Son, which have a chartered capital of less than $1 million – remained high, reaching VND3,000 per share.
The good results are also rooted in the fact that prices of their products in stock, manufactured last year, were lower than current market prices, the companies said.
Transportation stocks posted similar positive first half results as the building materials sector.
Small caps like VINASHIN Petroleum Investment and Transport (VSP), Dong Do Marine (DDM), Sea & Air Freight International(SFI), Saigon Maritime (SHC) and Vietnam Container Shipping (VSC), had EPSs ranging from VND3,000-14,700 in the first six months of the year.
The transportation firms clearly benefited from subsidized fuel prices and increased service charges.
Large companies with market capitalization of more than $30 million – including PV Trans, Vipco and Vitaco, meanwhile, have posted very low EPS, ranging from VND320-830 per share.
The big firms were hit by an increasing in banks’ lending rates.
PV Trans’ first half interest payment alone, on a borrowing of VND413.2 billion, amounted to VND36.74 billion.
Its first half after-tax profits of VND23 billion pales against the firm’s chartered capital of VND720 billion.
Among major construction material stocks, steel manufactures stood out alone in posting healthy first half earnings, thanks to a spike in global steel prices.
Based on their first half performances and the relatively smaller number of shares on the market, small stocks in building materials and transportation sectors look set to attract more investors this month.
Thanhnien
|
