Construction and logistic firms posted high EPS in 2009

VNStockNews.com - Along with revenue and profit, Earnings per Share are also an important factor for investors to evaluate the corporate strength and calculate Price to Earning (P/E) ratio to select good stocks.

Ranking EPS of listed firms in 2009 has many positive movements against the previous year. Among 361 companies announcing the 2009 business results, 89 reached the EPS of over 5,000 dong, 20 posted EPS of more than 10,000 dong. DTC, VTS, VSC and CTD were in the top of EPS gainers of 2009.

DRC, Da Nang Rubber Joint Stock Co, replaced HGM (Ha Giang Machinery and Mineral JSC) to take the lead among listed firms with the recorded EPS of 25,370 dong. Following DRC was NTL (Tu Liem Housing Development JSC) with the EPS of 25,010 dong, DTC (Viglacera Dong Trieu JSC) 18,700 dong, Cho Lon Real Estate JSC 18,420 dong, VIS (Viet Italy Steel JSC) 15,280 dong and VTS (Viglacera Tu Son) with 14,400 dong.

The enterprises with the high capitalisation were absent in the list of top EPS gainers. Some medium cap companies saw a strong growth in EPS, such as EPS of DRC surging by 6.54 times, VIS 1.75, NTP up 2.01 times, DHG up 2.13 times thanks to increase the production capacity of available pharmaceutical factories.
Up to 8 of 15 companies posting the high EPS in 2009 are operating in construction and logistics because these sectors enjoyed direct interests from the government's first economic stimulus package. Construction and logistic companies had a capital volume with the subsidised lending rate of 4 percent/year for production and business, promoted the available advantages to expand business production and caught development opportunities. In 2010, it is predicted that there will not be many conditions like 2009 because the first economic stimulus package ended and the second one will not be for these enterprises.

However, basing on the successful performance of 2009 together with the optimistic forecast on 2010 economic prospect, these enterprises still could perform well this year but their profit could decline against 2009.

Beside the companies undergoing the economic downturn are others that continue falling deeper in losses. Ben Tre Aquatex Joint Stock Co (FBT) posted a negative EPS of 7,730 dong because of the difficulties in seeking new markets and a sharp reduction in prices and export volume to old markets of EU, Russia.

With the EPS of -3,090 dong, SD8 of Song Da 8 JSC followed FBT because the company had no new contract and its projects had to be stopped for capital shortage, and then TRI of Saigon Brewery JSC with EPS of -2,990 and ANV of Nam Viet JSC with -2,690. Three of seven EPS losers in 2009 are in seafood sector.