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Some firms in the oil and gas industry also recorded impressive business results. Source: Internet.

Textiles, pharmaceuticals have impressive results

SSI Research recently released an estimate of the business results of the second quarter of 2021 of 33 companies in the research area, of which 27 companies expect positive profit growth and six businesses have declining profits. For the steel industry, SSI Research forecasts the business results of the two giants Hoa Phat Group Joint Stock Company (Code: HPG) and Hoa Sen Group Joint Stock Company (Code: HSG) will both grow at a high rate.

Not only are steel firms expected to have good growth, but textile firms also recorded positive numbers. According to data from TNG Investment and Trading Joint Stock Company, accumulated in the first six months of the year, this business has revenue of 2,366 billion VND, completing 104% of the semi-annual plan and increasing 29% over the same period in 2020. Estimated six months accumulated profit of TNG is 80 billion dong, up 25% from the same period last year.

One of the main drivers for TNG's operations to record good profits in the second half of the year was factories received enough orders for the end of the third quarter of this year. There are factories that have received enough orders for the year and have to refuse new orders. Three products with the prospect of profit margin five times higher than traditional garments (manufactured by ODM) of TNG showing positive signs are gloves and camping tents, producing cotton materials.

Momentum is improving, it is expected that TNG's sales revenue in July will hit VND 625 billion.

As an firm with many creative and flexible management solutions, increasing self-produced goods, and grasping the market well, in the first six months of the year, Traphaco Joint Stock Company (stock code: TRA) was estimated at VND 1,030 billion of consolidated revenue and profit after tax of VND 124 billion, up approximately 22% and 38% respectively over the same period last year. The production and business targets of the company have all met and exceeded the set plan. Notably, Traphaco has had six consecutive quarters of profit growth, confirming that the company has entered a period of positive growth.

Many businesses get closer to their annual goals

Also joining the list of large profit firms, it is expected that in the first six months of the year, Tuong An Vegetable Oil (TAC) estimated revenue of 3,000 billion dong, increasing more than 37% from the same period in 2020, pre-tax profit of 105 billion dong, up 22%. In 2021, Tuong An approved a business plan with revenue of VND 5,266 billion, profit before tax of VND 232 billion, a slight increase compared to 2020. To achieve such results, Tuong An will continue to focus on increasing market share in two mid- and high-end product lines, implement regionalisation strategies, develop seasonal business plans and product portfolios suitable for each locality to create competitive strength, increase market share. Continuing the strategy of premiumising products including, specialised oil product groups; seasonal premium cooking oil; fragrant sesame and olive oil.

In addition, TAC plans to invest, expand Phu My oil plant, expand Vinh plant's construction area from 8,800 m2 to 17,000 m2, increase oil plant capacity in Vinh from 40,000 tonnes/year to 150,000 tonnes/year to reduce production and logistics costs, and at the same time increase the supply capacity of goods for the north and central markets.

TAC also adopted the business model transformation. With the changing business strategy, TAC will mainly produce products for some customers, while the sale and most of the distribution of products to the market will be handled by Kido. TAC signed a product purchase and sale contract with Kido and Kido will distribute and sell Tuong An products to all domestic and foreign sales channels. In addition, Tuong An accelerates its plan to become a leader in the cooking oil industry in Vietnam and expand into other food products according to the Group's direction.

Thanks to the high oil price, Binh Son Refining and Petrochemical Joint Stock Company (Code: BSR) is an firm with impressive results with an estimated profit of over 3,000 billion VND in the first half of the year (the same period lost more than 4,200 billion VND after the same period). The reason is, in the first 6 months of the year, the price of WTI oil increased sharply from more than 40 USD/barrel to over 70 USD/barrel, which helped oil and gas firms benefit.

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PetroVietnam Transportation Corporation (PVTrans - Code: PVT) also recorded a profit of 420 billion dong after six months thanks to higher charter rates. This result helped the business achieve 84% of the yearly plan.