( 06-06-2014 - 11:14 PM ) - Views: 1914

According Vietstock, 15 listed companies in the steel industry, the majority of all loss or reduction in your interest rate 1/2014, only four profitable business growth.

According Vietstock, 15 listed companies in the steel industry, the majority of all loss or reduction in your interest rate 1/2014, only four profitable business growth.

4 enterprise "luck" include HPG, SSM, VGS and DTL. In particular, Hoa Phat (coded HPG) most prominent when net profit nearly doubled over the same period last year, reaching 870 billion. This result is partly due during the period, HPG has recorded revenue from apartment sales Mandarin Garden project.

Earning 1/2014 enterprises of the steel industry on the floor

Source: VietstockFinance
And again, most of the businesses in the steel industry is struggling with the difficulties of the market. Even as "big" Hoa Sen (coded HSG) reported weak results in the first 3 months of 2014. Specifically, in this period of time, HSG only 68 billion profit, less than 1 / 3 result in the same period last year. This result for the first six months of the 2013-2014 fiscal year net profit reached just over HSG 170 billion and made only 28% of the yearly plan.

Earlier, at the AGM in 2014, Mr. Le Phuoc Vu - Chairman HSG said more than 50% of HSG profit in fiscal year 2012-2013 from raw speculation. According to Vu, it is wise to deal with the volatility in raw material prices. However, this seems to no longer support HSG in the new financial year. Even forecasts of Saigon Securities (SSI), the profit of HSG in 2013-2014 fiscal year may be reduced by 20% with no speculative profits steel.

Besides, both as psychology, VIS, NKG, DNY also have the first 3 months results in 2014 fell sharply compared to the same period last year. However, this is not the greatest difficulties that businesses are burden to industry. Many businesses still are "struggling in the mud" that loss does not have to get out of the way.

With over 13 billion loss in quarter 1/2014, Phnom Penh (HNX: NVC) has set a record for himself when holes 9 consecutive quarters since quarter 4/2011. Accumulated losses of NVC to have more than 364 billion 03.31.2014, 2 times higher than actually contributed charter capital of the company. And this is why NVC must accept the "pack" leave the floor on 26/05 to the prescribed compulsory delisting.

Or for Huu Lien Asia (HOSE: HLA), new over 3 consecutive quarters of losses, but this group has put himself in an awkward position when the accumulated losses exceed capital actually contributed charter. This means that the last 6 months of the fiscal year 2013-2014 that HLA is not a positive change in the business, the results will be compulsory delisting.

Why so?

General assessment of the activities on the floor of the steel business in the quarter 1/2014, Mr. Phan Dung Khanh - Director of Investment Consulting Maybank Kim Eng Securities (MBKE) for inventories and output that still exist two large. Accordingly, the demand for raw materials in the construction industry (mainly the output of the steel industry) in the first months of the year have increased, though not corresponding to the size of the market. Therefore, the steel industry businesses can not boost the supply of products, thereby increasing revenue and profit.

According to Khanh, for the steel business on a small scale also suffer more pressure to compete with big business, name. Evidence is now coming here had to leave the pitch due to loss of steel consecutive years. Regarding the investment in the steel stocks on the floor, his head still recommend Khanh should choose two leading enterprises currently HSG and HPG.

Inventories of steel companies on Floor

Going back to the steel business quarter financial statements published 1/2014, Dana Steel - Italy (HNX: DNY) has the biggest profit decline (over 90%). As explained by DNY, in the first 3 months of 2014 there has been two months of the holiday should fall on the company only produces 50% capacity while the depreciation cost of steel chain Personnel Training at a high level.

For Nam Kim Steel (HOSE: NKG), the company said first-quarter net profit fell 60% over the same period last year due to depreciation costs of fixed assets increases, coupled with the price of raw materials and transportation costs also increased.

Tien Len Steel Corporation (HOSE: TLH) is different. According to the explanation of this corporate profits quarter 1/2014 decline was due to the same period last year had revenues surge from the merging companies Phuc Tien (PHT). Specifically, the reversal of provisions on investment securities PHT over 106 billion codes.

A longtime expert in the field said, after a long period of fluctuating steel market irregularities, steel prices continued to decline due to an imbalance of supply and demand in the market. Entering 2014, the market was more stable, inventories at steel plants have also stabilized. The phenomenon of selling at any price to reduce inventories significantly reduced. This was the signal for the market flourishes.

However, in another aspect, the expert said that the sale of inventory to repay the loan at the present time is becoming more difficult as banks are very tight squeeze. Accordingly, the steel enterprises should have a new desire to bring more money into the bank and "liberate" the inventory is "pledge".

Vietstock Statistics also show that the total value of the inventory on the floor and steel enterprises 20.200 billion at the end of quarter 1/2014.

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