Businesses lower targets after pandemic mauling

By Minh Son   May 17, 2020 | 04:53 pm PT
Businesses lower targets after pandemic mauling
The logo of Eximbank seen on a building in Ho Chi Minh City. Photo by Shutterstock/TK Kurikawa.
Many construction and retail companies and banks have lowered their business targets after the coronavirus cuts into revenues and dampened growth prospects.

Nguyen Duc Tai, chairman of electronics retailer Mobile World Investment Corp (MWG), told a recent meeting the company aims to reach the same revenue as last year with profit to fall no more than 20 percent despite consumption forecast to decrease amid the Covid-19 crisis.

The board is still discussing adjustments while specific targets would be released later, he added.

MWG’s revenue last year rose 18 percent to VND102 trillion ($4.4 billion), with an after tax profit of VND3.8 trillion ($163 million). Its earlier target for this year was revenue up 20 percent, and after-tax profit up 26 percent.

Lender Eximbank has lowered its pretax profit target by 40 percent to VND1.3 trillion ($56 million), still 20 percent higher than what it achieved last year. It also lowered other targets in asset, credit and capital mobilization.

Hoa Binh Construction Group JSC also lowered its revenue target by 31 percent to VND14 trillion ($600 million) and after-tax profit by 72 percent to VND200 billion ($8.6 million).

Household appliance manufacturer Dien Quang JSC, in its worst case scenario, estimates a revenue drop of 35 percent to VND543 billion ($23 million) and a loss of nearly VND10 billion ($428,600).

Quartz maker Vicostone, also in its worst case scenario, forecast revenue and pretax profit growth of 1 percent from VND5.6 trillion ($240 million) and VND1.6 trillion ($68 million) respectively last year. It had earlier targeted 20 percent growth in both instances.

Analysts from brokerage firm Bao Viet Securities JSC said the lower targets could affect company stocks this year.

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