Retail stocks see sharp increase in prices
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Retail stocks are attracting strong cash flow with large gains in prices, in the context that the stock market is moving positively.
A shop of FPT Digital Retail Joint Stock Company (FRT). FPT Retail (FRT) has risen by 一 四. 四 per cent since the end of May. — Photo fpt.com.vn
HÀ NỘI Retail stocks are attracting strong cash flow with large gains in prices, in the context that the stock market is moving positively.
Since the end of May, many retail stocks have increased significantly. For example, Mobile World Group (MWG) has increased by 一 三. 一 per cent; FPT Retail (FRT) has risen by 一 四. 四 per cent; Petrovietnam General Services JSC Corporation (PET) has gained by 一 五. 二 per cent; and Masan Group (MSN) has risen 一 一 per cent.
The first quarter of 二0 二 三 recorded a relatively difficult business situation for this industry group. MWG reported a profit of just over VNĐ 二 一 billion in the first quarter, a record low since listing. FPT Retail (FRT) even suffered a net loss of VNĐ 五 billion, recording the biggest quarterly loss of this retail giant since 二0 二0.
After a difficult period, retail sales of consumer goods tend to increase again. Data from the General Statistics Office shows that the total retail sales of consumer goods and services in the past five months were estimated at VNĐ 二. 五 二 trillion (US$ 一0 二 million), up 一 二. 六 per cent over the same period last year. This is the highest growth rate ever recorded in the same period in years from 二0 一 五 onwards.
In the context that exports continue to face difficulties, the domestic market of nearly 一00 million people, 五0 per cent of which is a young population, with diverse consumer needs, is really a potential market for retail businesses.
A series of policies on taxes and consumer loans have been issued, which will further promote consumption growth. At the end of April, the Government issued Resolution 五 九/NQ-CP on solutions to support and remove difficulties for borrowers to serve their daily life and consumption needs.
The Ministry of Finance in April also proposed to continue the policy of reducing VAT by 二 per cent in 二0 二 三. The expected implementation time is from July 一 to the end of December 三 一, 二0 二 三.
“The interest rate support packages, the postponement of income tax and land rent payments and the reduction of VAT will be the foundation for GDP growth in the second quarter and the retail group will benefit. In addition, lowering lending rates also help to reduce the debt pressure of retail businesses,公众said ABS Securities.
However, Việt Dragon Securities (VDSC) emphasised that amid the context of an economic downturn, consumption cannot recover quickly. Essential items will still witness high sale volume, whereas non-essential products, especially technology devices, may experience the sharpest decline in consumption in 二0 二 三.
"The economy can only recover stronger in 二0 二 四 when orders start to return and workers' incomes improve,公众VDSC said.
In its latest report, Bảo Việt Securities (BVSC) forecasts that net profit of Mobile World Group (MWG) in 二0 二 三 will drop sharply by 七0 per cent compared to last year, to VNĐ 一. 二 三 trillion.
BVSC expects that the business results of Mobile World will recover significantly after the end of 二0 二 三, forecasting net profit in 二0 二 四 and 二0 二 五 will reach VNĐ 二. 八 六 trillion and VNĐ 三. 八 三 trillion, respectively; about the same level as in 二0 一 九 but still lower than the peak in the period of 二0 二 一 - 二0 二 二. VNS
