Hanoi (VNS/VNA) - Even though economic growth is expected to stronglyrecover this year as the pandemic has been contained, companies in manysectors have still lowered their profit targets. 

Accordingto VNDirect Securities Corporation, total profits of companies listed on threeexchanges, including the Ho Chi Minh Stock Exchange, Hanoi Stock Exchange andUPCOM, rose 15.6 percent year-on-year in the fourth quarter of 2020.

Withoutstanding economic recovery, listed companies’ profits are estimated to grow23 percent this year, said VNDirect.

However,despite a bullish outlook, many companies submitted lower business planscompared to last year to shareholders. 

PhaLai Thermal Power JSC (PPC) set a target of nearly 5.7 trillion VND in totalrevenue, down 31 percent over last year, resulting in a drop of 66 percent inprofit before tax to 415 billion VND.

Althoughthe power sector is expected to grow as it has recovered strongly, PPC's profittarget is the lowest since 2014.

During2017 - 2020, PPC had always set a profit plan of over 700 billion VND per yearand then surpassed the plan. Last year, the company exceeded its profittarget by 30 percent.

Thecompany is likely to face many difficulties and challenges this year.

“Poweroutput and contracted power output are very low this year, which will affectour operation process, as well as business results,” said PPC.

Thevolatility of coal prices also directly weighs on the company’s productioncosts, affecting its competitiveness in the electricity market.

PetrovietnamFertilizer & Chemicals Corporation (DPM) and Petro Viet Nam Ca MauFertilizer JSC (DCM) also lowered their business results on higher raw materialcosts. Accordingly, DCM set this year’s profit after tax at 197 billion VND,down 70 percent year-on-year, while DPM estimated its profit after tax todecline 48 percent to 364 billion VND. 

DCMsaid that it has to face a series of difficulties, especially as gas pricestended to rebound, the COVID-19 outbreak and new strains spreading to manycountries, and the drought and saline intrusion in the dry season in thesouthwest continues unpredictably, affecting demand for fertiliserproducts.

Severecompetition between local and foreign fertiliser producers also puts pressureon the market. 

Enterprisesin the natural rubber industry also hesitated in making business plans such asPhuoc Hoa Rubber JSC (PHR), Vietnam Rubber Group JSC (GVR) and Tay Ninh RubberJSC (TNR).

PHRexpected 2021 will be a tough year for the industry, especially in collectinglatex. 

Afterstruggling last year, the business prospects of enterprises in the fisheriessector are poor.

TravelInvestment And Seafood Development Corporation (DAT) estimated this year’srevenue at 2.1 trillion VND, down 2.8 percent against last year, with profitafter tax decreasing 22.9 percent to 40 billion VND.  

Accordingto DAT, demands in export markets due to COVID-19, higher freight costs andhigher raw materials costs are reasons for its pessimism.

Similarly,after a plunge in 2020, Vinh Hoan JSC (VHC) continues to set a lower profittarget. The enterprise expected a drop of 22.2 percent in revenue to 8.5trillion VND, with profit after tax of 700 billion VND, down by 2.6 percent.

Somecompanies even set negative profit targets.

36Corporation (G36) surprised shareholders and investors with a revenue plan ofover 19 trillion VND, down 17.03 percent year-on-year, and a loss of 66 billionVND.

In2020, despite being heavily affected by the COVID-19 pandemic, G36 stillrecorded impressive business results as its revenue reached over 2.3 trillionVND (up 28.7 percent), resulting in a growth of 83.4 percent in profitafter tax profit to 58 billion VND. Since registering to trade onUPCOM in 2016, G36 has always been profitable./.