Profits of listed companies forecast to grow strongly in 2022

Vietnam has a good vaccination rate among adults and this creates a great opportunity for its economy to rebound, Mr. Nguyen Hoang Giang, Chairman of DNSE Securities, has said in reference to the profit prospects of recently-listed companies.

According to forecasts, the profits of listed companies will increase 17-20 per cent in 2022 compared to 2021. The financial and securities industry and services related to retail are likely to post outstanding growth. Banks will see growth of about 20-25 per cent and exceed the market average, while stocks will also have a good foundation to grow.

The return of aviation and tourism presents an opportunity but to what extent remains uncertain as it will depend a great deal on policy and not on the intrinsic initiative of businesses.

Most securities companies have published their 2022 market strategies, with forecasts of profit growth and volatility in the VN-Index over the course of the year.

Specifically, according to VnDirect, after losing its growth momentum in the third quarter of 2021, Vietnam’s economy is now operating in the “new normal” with a high rate of vaccine coverage and gradually opening up to the world. The VN-Index is forecast to reach 1,700-1,750 points in 2022, based on a P/E valuation of about 16-16.5 times, and profit growth in enterprises on the Ho Chi Minh Stock Exchange (HoSE) will reach 23 per cent.

Some industries are expected to see strong improvements in profit growth, including industrial goods and services, retail, real estate, oil and gas, public utilities, and technology.

Mirae Asset Securities and MBKE Securities also believe an economic rebound will come in 2022 thanks to higher vaccination rates, structural reforms, and support from fiscal policy and monetary easing. Exports, public investment, banking, securities, information, and technology are expected to grow strongly.