Trang chủNewsnewsSMC lifts profit target on steel industry's positive outlook

Date: 30/03/2021

 

SMC lifts profit target on steel industry's positive outlook

Workers operate machinery at SMC's plant. Photo smc.vn

HÀ NỘI — Thanks to the optimistic outlook of the steel industry in the long-term on stronger demand from the recovery of the construction industry, SMC Trading Investment JSC doubled this year's profit after tax target.

On March 19, the Board of Directors of SMC approved the adjustment to increase 2021's profit after tax target to VNĐ300 billion, an announcement published on its official website showed.

Earlier, the company made a cautious target of just VNĐ160 billion, down 49 per cent over the result of 2020. The move suggested that SMC is optimistic about the industry outlook in 2021.

Another peer also increased its revenue and profit targets for 2021. Nam Kim Steel JSC (NKG) set a target of VNĐ16 trillion in net revenue and VNĐ600 billion in profit after tax, up 38 per and 103 per cent over the same period of 2019, respectively.

Right after the news, SMC shares hit the biggest daily gain to VNĐ29,650 a share on March 22, up 52.1 per cent against the beginning of the year.

On Wednesday, SMC shares traded at VNĐ28,500 a share, down 2.73 per cent, while NKG stayed flat to finish the day at VNĐ21,700.

Brighter steel industry outlook

In 2020, the price of hot rolled coil (HRC) on the global market surged and even broke over US$700 a ton, pushing up the domestic price. As all of the company's main businesses need HRC, steel product prices rose dramatically in the last months of 2020. 

The HRC price continued its rally since the beginning of the year on stronger demand from China. The most-active May HRC future contract on Shanghai Future Exchange was 5,130 yuan/ton (US$784.37 a ton) on Thursday.

According to a steel industry report released in mid-January by SSI Research, the driving forces of domestic steel demand include infrastructure investment and FDI inflows, which also help promote civil construction activities along with infrastructure and FDI projects.

Export demand is still positive. SSI Research estimated a single-digit growth in Việt Nam's steel exports. However, as the world supply becomes more stable, foreign sales are likely to face intense competition in export markets.

Many other securities firms expect a bright outlook for Việt Nam's steel industry. 

Mirae Asset Securities (Việt Nam) Limited Liability Company (MiraeAsset) projected the country's steel production to increase by 15.7 per cent in 2021, three times higher than its expectation of world steel production. 

Meanwhile, Vietcombank Securities Company Ltd (VCBS) has assessed that local steel demand will continue to grow on the recovery of real estate, as well as momentum from public investments. — VNS


news orther

MoIT proposes 35 per cent cap on foreign investment in petrol market

Date: 13/04/2021

Foreign investments might flow into Việt Nam's stock market from the second half of 2021: BVS

Date: 12/04/2021

Businesses from Viet Nam, Algeria, Senegal seek partnership opportunities

Date: 09/04/2021

Vân Phong to be developed into coastal EZ by 2025

Date: 08/04/2021

Japanese company sets up joint venture in HCM City

Date: 07/04/2021

Kiên Giang eyes new economic zone

Date: 06/04/2021

Foreign parliament leaders congratulate new NA Chairman

Date: 05/04/2021

Vietnamese economy expands 4.48 per cent in Q1

Date: 02/04/2021

HCM City unveils export targets for next decade

Date: 01/04/2021

Ship trapped in Suez Canal affects import and export activities in Việt Nam

Date: 31/03/2021

Bà Rịa Vũng Tàu port receives giant container vessel

Date: 26/03/2021

Nearly 3 million phishing attempts aimed at small businesses in region last year: Kaspersky

Date: 23/03/2021

Japanese investors continue to invest in southern provinces

Date: 22/03/2021

Trà Vinh Province seeks investment

Date: 19/03/2021

Electronics lead HCM City industrial revival

Date: 18/03/2021

Việt Nam, Singapore discuss bilateral relations development

Date: 16/03/2021

Quảng Trị to host investment promotion conference in late June

Date: 15/03/2021

Bắc Giang strives for $1.3 billion worth of investment in 2021

Date: 12/03/2021

HCM City mulls ways to attract global investors, targets $5.4b FDI

Date: 11/03/2021

Agricultural co-operatives benefit hugely from investment in technology: experts

Date: 10/03/2021

2006 - 2019 http://dilawfirm.vn - all copyright reserved. Email: info@dilawfirm.vn

Design by Nhật Thành.NET
https://www.facebook.com/quocte.danang