The year 2020 is closing and while Q4-2020 corporate earnings takes time to be disclosed, we would like to present “FiinPro Digest #6: Corporate Earnings Back on Track but Oil & Gas and Travel & Leisure” which covers listed companies’ earnings growth and quality in 9M2020 as well as growth forecast for the whole year to provide clients with a longer vision.
The Report aims to give findings based on data-driven evidence and analysis on major themes as follows:
- Q3-2020 Corporate Performance: In Q3-2020, net revenue and profit after tax (PAT) of non-financial listed companies (excluding Banks, Insurance and Financial services) dropped by 8.4% and 8.8% YoY, respectively. This marks the QoQ improvement while corporate earnings quality has been improving as well, but yet to catch up with accounting profit growth as many companies recorded non-core items including financial incomes.
- Earnings Forecast 2020: We forecast an 8.2% decline in net revenue and 21.4% drop in profit after tax of non-financials in 2020 while listed banks are forecast to achieve a 10.2% growth in 2020 profit after tax.
- Valuation: Our estimate shows that the forward 12-month P/E of non-financials is 20.6x
- Sector Outlook 2021: 4/16 sectors have 2020 growth forecast rated as DECELERATE, but their 2021 growth prospect is positive and thus likely drives up stock price.
Download full reports:
In the Report, data was mainly extracted from our FiinPro Platform which is currently used by many local and foreign institutions.
We hope that this Report will support not only analysts at investment institutions and individual investors but also banks and relevant agencies with working out measures or policies to lessen the Covid-19 impact on different sectors.
For your reference of the entire Digest series, please visit these links below:
- FiinPro Digest #1: Vietnam Stock Market: 2019 Insights and 2020 Outlook from Data Analytics Perspective
- FiinPro Digest #2: Corporate Earnings Growth is Slowing Down
- FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Financial Data Perspective
- FiinPro Digest #4: Post Covid-19: 2020 Earnings Prospect and 6M2020 Performance
- FiinPro Digest #5: Vietnamese Corporate Earnings Quality amidst the Covid-19 Pandemic: