Listed firms set high goals in spite of 2010 negative results

Many listed companies confidentially set earning targets this year at high expectations in spite of their negative financial results in 2010.

View of the annual general meeting of the PetroVietnam Fertilizer and Chemicals JSC. Many listed firms set high earning targets this year in spite of negative results in 2010 (Photo:Minh Tri)

In 2010, a slumping global fee left maritime time Viet Hai failing to meet the earning goals second year in a row as its pretax profit made nearly 10 percent out of the targeted amount to reach VND827 million ($41,350) only.

The HCMC-based company said in a financial report that it earned a revenue of nearly VND891 billion last year, adding it will not pay last year’s dividend.

Despite the consecutive failures, the Hanoi bourse-listed firm still looked very confident as it sought shareholders’ approval for targeted revenue of VND1.5 trillion ($75 million) and a pretax profit of VND133.35 billion in 2011.

According to the proposal, the former is expected to increases 68.3 percent year-on-year and the latter will be 161.2 times higher than last year’s amount.

However, the targets were disapproved at the AGM this month as big shareholder shipbuilder Vinashin voted against the financial plan.

Experts said Viet Hai’s confidence was built up by its property investment projects, which the firm hopes it will boost the earning results this year.

Nguyen Duy Hung, member of the Board of Directors, said Viet Hai was looking for partners with a strong financial base to cooperate in the property projects including Me Linh – Hanoi residential zone with the total area of 217 hectares.

The maritime firm is also mobilizing capitals for its property projects in Can Giuoc District of the southern province of Long An.

Analysts warned that Viet Hai would struggle to find out partners for its property projects as the real estate market remained gloomy. It is also expected to hardly mobilize capitals due to the bearish stock market.

VinpearlLand made a net profit of VND119.5 billion (US$6 million) from a revenue of VND1.13 trillion in 2010, the resort operator announced at the annual general meeting (AGM) this year.

The revenue and the net profit are 14.4 percent and 57.2 percent respectively higher than the targets, according to the Ho Chi Minh City bourse – listed company.

VinpearlLand targeted a revenue of VND1.95 trillion ($97.5 million) and an after-taxed profit of VND545.55 billion this year, a significant year-on-year increase of 73 percent and 356 percent in 2011.

At the AGM, shareholders of the builder Song Da Trading and Transport JSC also approved high earning targets this year, with the revenue and pretax profit expected to rise 142 percent and 153 percent to VND846 billion and VND28.33 billion respectively.

Wall Street Securities Company, which lists on the Hanoi exchange, followed a similar pattern, expecting to make a net profit of VND59 billion ($2.95 million) – 4.2 times higher than last year’s amount.

The Hanoi-based brokerage also said confidentially at the AGM that it would make profits this year in spite of the slumping stock market. The firm is among the biggest losers on the Hanoi Stock Exchange this year.

By Hai Ho – Translated by Vu Minh

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