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VietNamNews

Auto stocks make gains on investor attention

Update: May, 09/2015 - 08:51
The five auto stocks listed on the two exchanges are Hoang Huy Investment Services Co (HHS), TMT Automobile Co (TMT), Saigon General Service Corp (SVC), Hang Xanh Motors Service Co (HAX) and Truong Long Auto & Technology Co (HTL). — Photo vtc

HA NOI (VNS)— Auto stocks are drawing interest from investors as they continue to climb.

The five auto stocks listed on the two exchanges are Hoang Huy Investment Services Co (HHS), TMT Automobile Co (TMT), Saigon General Service Corp (SVC), Hang Xanh Motors Service Co (HAX) and Truong Long Auto & Technology Co (HTL).

The Vietnamese stock market saw sluggish trading early this year, with the VN-Index increasing just 1.6 per cent and HNX-Index dropping 3.8 per cent.

Nevertheless, auto stocks advanced significantly, propped up by encouraging business results and a positive outlook for the auto market in 2015.

HTL witnessed the biggest growth, with the share price climbing 154 per cent from VND25,200 (US$1.16) in December to VND64,000 yesterday. TMT also saw strong development with a rise of 98 per cent in value, while other stocks made gains between 10-43 per cent during the period.

This development was attributed to positive earnings, with HHS reporting a consolidated net profit of VND54.7 billion ($2.5 million) in the first four months.

HAX has yet to release its first quarter earnings report, but other auto companies have posted positive results.

TMT earned an after-tax profit of nearly VND41 billion ($1.9 million) in the three months ending March, a four-fold increase compared with the same period last year, while Truong Long Auto saw its profit rise by 340 per cent to VND18.7 billion ($862,000) in the first quarter. SVC had the smallest growth of 27 per cent during the period, with a combined profit reaching VND125 billion ($5.8 million) from January-March.

According to market insiders, auto sales in Viet Nam were likely to continue to grow this year with rising demand.

Total auto sales reached almost 16,400 vehicles ending March, an increase of 62 per cent against the same period last year, of which imports surged 69 per cent while locally assembled cars increased 60 per cent during the period, Vietnam Automobile Manufacturers' Association (VAMA) reported. — VNS

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