With a view to serve manufacturing and enterprise actions, enterprises maintain a sure amount of money (together with money and short-term deposits). How a lot money to carry depends upon many elements corresponding to particular enterprise strains, funding wants, and many others.
Within the context of a chronic epidemic state of affairs, firms with considerable money and low monetary leverage can be higher capable of face up to challenges and recuperate than different companies.
The actual fact is that a lot of the largest enterprises on the inventory trade have considerably elevated their money. Our information exhibits that, as of June 30, 2021, there are over 30 companies on the ground holding money price over VND 2,000 billion. Money figures right here embrace money available, demand deposits and deposits with phrases of lower than 1 yr (categorised as short-term monetary investments). This statistic doesn’t have in mind monetary establishments corresponding to banks, insurance coverage and securities firms.
As much as 16 of those companies maintain an quantity of greater than 10,000 billion VND. These are all main enterprises in key sectors of the financial system from aviation, power, shopper items, actual property to iron and metal or vehicles corresponding to ACV, PV GAS, Vingroup, Vinamilk, Petrolimex, Sabeco , FPT, VEAM, Rubber Group…
The 4 main names together with ACV, Vingroup, Hoa Phat and PV GAS all have greater than VND 30,000 billion in money and deposits.
On this quartet, ACV and PV GAS have historically been on the high of the inventory trade by way of cash holdings, whereas Hoa Phat and Vingroup’s cash is growing quickly, particularly Hoa Phat.
If on the finish of 2019, Hoa Phat had solely lower than 6,000 billion VND in deposits, then by the tip of the final 2 quarters, it was as much as practically 32,000 billion VND. The prosperity of the metal and agriculture industries has helped Hoa Phat’s web revenue improve gallopingly from 7,500 billion VND in 2019 to 13,500 billion VND in 2020 and attain 16,700 billion VND within the first half of 2021.
Along with PV GAS, all three remaining companies have the necessity to put money into very giant initiatives within the coming years: with ACV being Lengthy Thanh airport, Hoa Phat investing in part 2 of Dung Quat advanced and Vingroup is develop VinFast with a sequence of mega-urban initiatives.