Non-financial public companies: Covid-19 pandemic has made negative impacts on growth and profit quality of these companies in Q1-2020 as well as their profit prospects for the whole year, in which:
Net revenue decreased slightly by 4.4%, but profit after tax plunged by 57.8% from the same period last year and 68.9% from the preceding quarter. If excluding two sectors worst hit by the Covid-19 outbreak (Travel & Leisure and Oil & Gas), profit after tax of the remaining sectors decreased by 27% YoY and 50.2% QoQ.
Under the circumstances, a number of certain sectors that seem to be resilient or less affected by the Covid-19 outbreak still maintained high growth in Q1-2020 and have a positive growth outlook for the whole year.
Banks: Despite strong decreases in revenue and profit of non-financial public companies, 18 listed banks still reported profit growth in Q1-2020. However, the full-year profit of these banks is on the same trend with corporate earnings.
According to FiinGroup, Covid-19 impacts could be reflected in the following quarters. The NPL formation rate increased to 0.23% in Q1-2020, equivalent to the Q1-2018 height.
EPS growth forecast in 2020: FiinGroup forecasts EPS of VN30 to fall 5.2% in 2020 despite a 15.3% growth forecast made prior to the Covid-19 outbreak.
Price and Value: The market has been driven by new money flows and strong fundamentals of leading sectors and stocks. FiinGroup believes that the pursuit of fundamental-based investment principles with a focus on corporate financial strength and earnings prospects remains an approach that is hard to be reversed in the post-Covid-19 era.
This Report is part of “FiinPro Data Digest” series and prepared for clients of FiinGroup’s services in general and subscribers of FiinPro Platform and FiinTrade Platform in particular.
The report is prepared by the Data Analytics team of FiinGroup's Financial Information Division. A majority of data in this report was extracted from our FiinPro Platform which is currently used by a lot of local and foreign institutions.
We hope that this Report will provide insights not only to analysts at investment institutions and individual investors but also to credit institutions and relevant government agencies in working out measures or policies to lessen the Covid-19 impact on different sectors.
Please click HERE to download the full report.
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