In an economic landscape largely shrouded in uncertainty, the dramatic profit growth of several companies has emerged as a bright spot, moving stock prices up.

Securities companies Securities companies have substantially benefitted from the stock market recovery since the start of the second quarter, particularly in light of the back-to-back interest rate cuts. According to statistics, outstanding margin loans in the whole market amounted to VND143.5 trillion by the end of Q2 2023, a 20.5% increase from Q1. This has contributed to progressive improvement in market liquidity, featuring lively transactions from both individual and institutional investors. Consequently, securities firms have seen tremendous profit growth in their Q2 business results. For example, VIX Securities Joint Stock Company (HOSE: VIX) reported Q2 profit of over VND565 billion, more than 54 times higher than Q1 and nearly ten times the figure from the same period last year. As explained by a company representative, the bullish stock market not only brings activities such as brokerage and margin lending back to prosperity but also makes investment portfolios profitable again. Thanks to this, the price of VIX has skyrocketed by nearly 35% since early July, making this stock one of the biggest gainers in more than three months. As a result, the company achieved its profit-after-tax target of VND540 billion for the entire year in just six months. Other securities companies like Vietnam Bank for Industry and Trade Securities Joint Stock Company (HOSE: CTS), Bao Viet Securities Joint Stock Company (HNX: BVS) and FPT Securities Joint Stock Company (HOSE: FTS) also reported high-profit growth, providing a major boost to their stock prices. Vietnam Bank for Industry and Trade Securities Joint Stock Company (HOSE: CTS) reported after-tax profit of over VND76 billion for Q2, 21 times greater than that posted in the same period last year. The price of CTS shot up by more than 60% since the beginning of Q2 and has nearly doubled since the start of the year. Bao Viet Securities Joint Stock Company (HNX: BVS) posted net profit of over VND79 billion in Q2, nearly three times larger than in Q1, and over five times the result obtained in the same period last year. BVS has seen its price surge more than 55% since early April. Likewise, FPT Securities Joint Stock Company (HOSE: FTS) reported net profit of over VND140 billion for the second quarter, a rise of 87% year-on-year. Overall, the company made over VND219 billion in profit in the first half of 2023, accomplishing 70% of its objective for the entire year. This result has helped the price of FTS rise consistently for nearly four months, with an increase of nearly 100%. To those with dramatic growth The release of mid-year financial reports has been a critical catalyst, giving the prices of several stocks a significant boost. The VN-Index has risen by about 7% since early July, and by more than 13% since the beginning of the second quarter. On July 25, it approached the important psychological milestone of 1,200 points. The positive profit results are expected to provide the market with solid support to avoid over-correction. In addition to securities companies, several enterprises that have released financial statements early, such as Binh Thuan Agricultural Services Joint Stock Company (HOSE: ABS) and Son La Sugar Joint Stock Company (HNX: SLS), have also seen their stock prices surge. Binh Thuan Agricultural Services Joint Stock Company (HOSE: ABS) got net profit of nearly VND53 billion in the second quarter, 6.4 times greater than the previous year. Thus, its profit was nearly VND63 billion in the first six months of the year, just VND1 billion away from its goal of VND64 billion for the entire year 2023. However, the price of ABS was moving sideways in a narrow range. Not until late July did it display signs of an upward movement following the release of the company’s financial report. Also in the agricultural sector, Son La Sugar Joint Stock Company (HNX: SLS) saw its stock price following a strong upward trend, and recently hitting an all-time peak of VND226,000 per share. With sugar prices escalating in the international market, the company's Q2 profit is more than three times higher than the same period last year, reaching VND108 billion. This takes its six-month accumulated net profit to over VND189 billion. As a result, the cumulative earnings per share (EPS) of SLS over the last four quarters exceed VND31,500. Therefore, even though its price is currently at a high level, the price-to-earnings (P/E) ratio this stock offers is only around 6.7. Amid the tense geopolitical situation, coupled with the fragmentation of major economic regions leading to supply chain bottlenecks, many countries are now stocking up on food and limiting the export of these commodities. Consequently, it is anticipated that the prices of agricultural products will surge in the near future. Most recently, India's ban on rice exports has led to record-high global rice prices, hence a substantial increase in the stock prices of rice exporters and traders such as PAN, TAR, LTG, and AFX. Meanwhile, Pha Lai Thermal Power Joint Stock Company (HOSE: PPC) also saw a sizeable increase in profit, with after-tax profit of more than VND167 billion in the second quarter. This was 4.2 times higher than in the first quarter and twice as much as the sum it earned during the same period last year. The company's accumulated profit for the first half of 2023 exceeded VND207 billion, already 4% above the target it set for the entire year. Despite these positive figures, the price of PPC has not made any major strides, largely because nearly VND100 billion of its Q2 profit came from dividends, as opposed to its core business operations. Other businesses that reported big after-tax profits in the second quarter, alongside significant year-on-year growth, include Military Insurance Corporation (HOSE: MIG), with net profit of nearly VND60 billion (up 253%); NET Detergent Joint Stock Company (HNX: NET), with VND59 billion (up 149%); Pacific Petroleum Transportation Joint Stock Company (HOSE: PVP), with VND55 billion (up 146%); Phuoc Hoa Rubber Joint Stock Company (HOSE: PHR), with VND121 billion (up 141%); and Binh Minh Plastics Joint Stock Company (HOSE: BMP), with VND295 billion (up 103%), among others. In a largely challenging economic landscape, with numerous businesses still facing difficulties, considerable growth in corporate profits emerges as a rare positive development. That said, not all businesses are experiencing genuine growth or recovery. Some companies' impressive profits can be attributed to extraordinary income from the liquidation of assets or the receipt of dividends from associates. Therefore, careful selection of stocks for investment is crucial. Furthermore, several enterprises that have reported their profits early have seen their stocks attract considerable cash flows, with prices surging in recent days. However, this carries potential risks. Investors who were well-informed beforehand and had accumulated these stocks earlier may view this as an opportunity to take profits, following the principle of selling their holdings as soon as relevant information is disclosed.