Profit growth of some industry groups in Q1/2024
In the first half of 2024, the Vietnamese stock market has had remarkable positive changes. The VN-Index has shown signs of recovery, from the threshold of 1,100 points at the beginning of the year, it increased to 1,287.58 points in the trading session on June 7, 2024, equivalent to a growth of 17%.
At the end of April, the market witnessed a strong correction with many groups of stocks being sold off heavily. The VN-Index at times lost the 1,200-point mark. However, the rapid recovery in May helped the VN-Index recover. The driving force came from a number of notable industry groups.
According to data collected by Dragon Capital on electricity output, cargo traffic, containers entering and leaving ports, purchase invoices at retail chains, etc., the economic recovery has begun, although the scale is still relatively slow.
In particular, profit growth in Q1/2024 reached about 15% from a number of industries such as banking, retail, materials, manufacturing... The recovery came from groups of large and small-scale companies, and is forecast to continue from now until the end of the year.
With the collected data, Dragon Capital maintains its forecast of corporate profit growth in 2024 from 16-18% compared to the same period last year.
Sharing the same opinion, Dragon Viet Securities (VDSC) also believes that the Vietnamese stock market is on an upward trend. However, in the second half of 2024, there are still a few variables that can affect the market's upward momentum.
Which industry group should investors choose?
With the growth momentum of VN-Index, which is forecast to continue growing until the end of 2024, choosing a potential industry group is extremely important for investors.
VDSC statistics show that the banking industry's profit growth rate is from 15-20% in the first half of 2024. This result is achieved due to the comparison with the low base of last year when the banking industry faced bad debt and had to increase bad debt provisions. In addition, the banking industry also faces a big challenge from the slow capital absorption rate of the entire economy.
In addition to the banking group, Rong Viet Securities also assessed that the consumer and information technology sectors will have prospects in the second half of the year. For the industrial park real estate, manufacturing, import-export, essential consumer groups, etc., the manufacturing and import-export groups are also highly expected, suitable for investors to "put down capital".
VPS Securities also offers 2 suggestions for choosing an investment industry group at the end of the year, including profit growth indicators. Suitable industry groups include: Information technology - telecommunications, pharmaceuticals, automobiles, etc. The second is the industry group with extraordinary business results at the end of the year, with cyclical growth such as rubber, fertilizer, chemicals, steel, oil and gas, etc.
In addition, in the stock market, HVA (HVA Investment Joint Stock Company) is still a Penny stock but has great growth potential thanks to the strategic vision of the management board. HVA does not focus on a specific field but invests in many different industries such as manufacturing, services, technology, banking, franchising and technology real estate.
With a clear development strategy and a talented team of employees, HVA is getting closer to its goal of becoming a Blue chip, bringing benefits to shareholders, partners and the community. Grasping the diversification of the investment portfolio. The company does not focus on a specific field or type of asset, but boldly invests in many different industries, from manufacturing to services, from technology to banking or even new fields such as Franchise and Technology Real Estate Investment... opening up development opportunities and bringing benefits to both the company and customers.
Source: FireAnt
