Brian Jeffrey
One of the listed companies, Northern Electricity Development & Investment JSC No2 (Nedi 2, ND2), experienced substantial profit growth in the first half of the year.
In the second quarter, the company generated revenue of VND86.7 billion, an increase of 21.7 percent from the same period last year. Its capital cost rose to VND30.6 billion, with a VND2 billion increase, while financial costs decreased by 53.8 percent to VND13 billion.
The company’s total post-tax profit reached VND36.5 billion, a significant rise of 94.1 percent.
By June, ND2 had total revenue of VND130 billion, marking a 19.2 percent increase, and a post-tax profit of VND36 billion, significantly higher than the VND645 million from the same period the previous year, showing a remarkable 5,481 percent surge.
ND2 attributed the sharp profit increase to higher rainfall in the second quarter compared to the same period in 2023, leading to a 20.43 million increase in electricity output. The company highlighted that electricity production revenue is influenced by weather conditions.
As of the end of the second quarter, outstanding principal decreased by 22 percent to VND593 billion from VND760 billion earlier this year.
Regarding the shareholder structure, by July 10, Vinaconex held 25.6 million shares of Nedi 2 (51.1 percent ownership), while Toyota Tsusho Corporation owned 17.5 million shares (35 percent).
Sao Vang Rubber JSC (SRC) also reported strong business performance in the second quarter with revenue amounting to VND328 billion, up by 19 percent.
The most notable aspect of its financial report was the significant rise in revenue from other sources of income (non-core business fields) to VND306 billion, compared to just VND42 million in the same period last year, with a profit of VND162 billion from these sources.
According to SRC, the surge in profit from other sources of income was due to the company’s decision to transfer the right to lease land with infrastructure and assets.
SRC posted a post-tax profit of VND114 billion, a remarkable increase of 1,750 percent, marking the highest quarterly rate since its inception.
Consequently, its revenue and post-tax profit in the first half rose by VND503 billion and VND117 billion, respectively.
Thong Nhat Flat Steel JSC (TNS) also reported a significant increase in revenue and profit, with sales and service revenue in the second quarter surging by 656 percent compared to the same period last year, reaching VND920 billion.
