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Weak sales push listed firms to cut profit predictions

Update: September, 13/2013 - 09:11
Petrolimex Insurance JSC (PJICO), code PGI, slashed its goal for this year by 22.22 per cent from VND135 billion (US$6.37 million) to VND105 billion ($4.96 million).—VNA/VNS Photo

HA NOI (VNS) — Many listed companies have cut their annual profit targets after seeing disappointing business performance in the first half due to unpredicted market difficulties.

Petrolimex Insurance JSC (PJICO), code PGI, slashed its goal for this year by 22.22 per cent from VND135 billion (US$6.37 million) to VND105 billion ($4.96 million).

Chairman Nguyen Van Tien said this was the most difficult year for insurance providers in two decades. In the first six months, the company made only VND3 billion ($141,643) in pre-tax profits.

The executive board planned to send details of the reduction to shareholders, though Tien promised that the company's commitment to pay a dividend of at least 9 per cent would stand.

Education Financial Investment JSC (EFI), code EFI, previously predicted it would make VND15.4 billion ($727,101) in pre-tax profits.

However, the company recently cut this figure in half to VND8.3 billion ($391.879), in line with a decrease in predicted revenue from VND25 billion ($1.18 million) to VND18.4 billion ($868,744).

At the same time, Phu Son Livestock JSC, code PSL sharply reduced its profit target by 77.14 per cent from VND17.5 billion ($826,251) to VND4 billion ($188,857).

And Thong Nhat Rubber JSC, code TNC, sliced its profit outlook by 22.09 per cent to VND33.5 billion ($1.58 million)

According to H1 reports, many listed companies have reached less than 20 per cent of their full-year profit targets. Consequently, other companies are also considering lowering their forecasts.

Hoang Mai Cement JSC (HOM) said it would likely be impossible to reach the profit target of VND95 billion ($4.48 million), as in the first six months HOM experienced losses of VND23 billion ($1.08 million). — VNS

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