Auto companies loved optimistic annual earnings because of flourishing earnings within the fourth quarter.
The Viet Nam Engine and Agricultural Equipment Company (VEA) ended 2021 with income of VND4.02 trillion (US$176.4 million), a rise of 9.6 per cent in comparison with 2020.
Its joint ventures and associates introduced in revenue of greater than VND5.1 trillion for the entire 12 months. This helped VEA earn revenue earlier than tax of VND5.94 trillion for the entire 12 months. Revenue after tax elevated by 3.6 per cent to VND5.79 trillion. Incomes per share (EPS) was VND4,321.
VEA’s three way partnership corporations embrace Honda Vietnam, Toyota Vietnam, and Ford Vietnam. VEA is having fun with excessive earnings from joint ventures and associates.
After the primary three quarters of unfavorable earnings, even shedding VND30 billion in Q3, Saigon Basic Service Company (Savico) recorded a web revenue of VND75.5 billion in This fall.
In the entire of 2021, Savico’s income reached VND14.12 trillion, a lower of 12 per cent in comparison with final 12 months. After tax revenue decreased by 6 per cent to VND144 billion.
In 2021, Savico set a goal of almost VND237 billion in after-tax revenue, thereby it achieved 90 per cent of the income plan. In the meantime on the finish of the primary 9 months of the 12 months, the completion charge was solely 38 per cent.
Buying and selling is Savico’s most important enterprise because it contributes as much as 90 per cent of annual income, of which car distribution brings the vast majority of income of this section. At present, Savico owns about 50 sellers, together with 13 Toyota sellers, 15 Ford sellers, eight Hyundai sellers, two Chevrolet, three Volvo, two Fuso, and another manufacturers reminiscent of Veam, Hino, Mitsubishi, Honda and Suzuki.
Because of elevated income and improved gross revenue margin, Cling Xanh Motors Service Joint Inventory Firm (Haxaco) earned web revenue of VND126 billion in This fall of 2021, doubling the identical interval a 12 months earlier. This consequence helped the enterprise obtain revenue progress of 28 per cent for the entire of 2021 with VND160 billion.
The corporate attributed the excessive revenue to the reopening of HCM Metropolis from the fourth quarter. Haxaco promoted promoting campaigns on on-line platforms, maximising revenue on every car and additional decreasing prices.
The Authorities’s supportive coverage on decreasing registration charges for vehicles stimulated the buying demand of shoppers. Accordingly, the variety of automobiles bought by Haxaco elevated once more, reaching the gross sales goal, the corporate stated.
As well as, the preferential rates of interest of affiliated banks in addition to the efficient use of capital contributed to decreasing monetary prices and rising earnings.
In the entire of 2021, Haxaco achieved VND5.55 trillion of web income, equal to 2020. Put up-tax revenue reached VND160 billion, up 28 per cent in comparison with final 12 months. Incomes per share (EPS) was VND3.34. This was additionally the best revenue Haxaco ever achieved.
Metropolis Auto (CTF), specialising within the distribution of Ford vehicles, introduced its income within the fourth quarter of 2021 reaching VND1.67 trillion, 5 occasions greater than within the third quarter. The fourth quarter’s revenue reached VND39 billion, the best revenue in lots of latest quarters of CTF.
Revenue for the entire of 2021 reached VND47 billion, many occasions greater than VND1 billion in 2020. Metropolis Auto defined that the auto market grew within the fourth quarter of 2021 and the fee management coverage helped improve earnings.
This 12 months, CTF units a marketing strategy to develop strongly with income reaching VND7.38 trillion, up 130 per cent and revenue after tax reaching VND80 billion, up 5,594 per cent.
Constructive outlook for 2022
Just lately, SSI Analysis launched a report assessing the short-term prospects of auto corporations. Accordingly, SSI Analysis forecast that with the Authorities’s fast and robust vaccination technique and new COVID-19 variants, it’s possible that there shall be much less dangers to well being, thereby much less social distancing measures. Automotive demand in 2022 is anticipated to extend by 16 per cent.
Based on SSI Analysis, the present automotive possession charge in Viet Nam continues to be low. As well as, the pattern of utilizing electrical automobiles in Viet Nam led by VinFast will drive the demand for vehicles even greater.
SSI Analysis believes that automotive shopping for demand won’t be robust within the first half of this 12 months because of the potential for new variants of COVID-19. Within the second half of 2022, automotive gross sales will start to extend, which would be the driving power for auto gross sales outcomes.
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