Tuesday, November 20, 2018 1:14:30 AM - Markets open
VN-INDEX 916.06 +17.87/+1.99%
HNX-INDEX 103.95 +0.93/+0.91%
UPCOM-INDEX 52.40 +0.38/+0.74%
Vinasun cuts revenue forecast
http://vietnamnews.vn/ - 4/17/2018 10:56:04 AM
 (0 ratings. You must sign in to rate.)
Taxi firm Vietnam Sun Corporation (Vinasun) plans to cut its full-year revenue for the fourth time for 2018 due to rising competition from foreign ride-hailing firms.
The figure for 2018 could be set at VNĐ2.16 trillion (US$96 million), down VNĐ1.07 trillion year-on-year, of which transportation and merchandise income would account for VNĐ2 trillion and the remainder would come from asset sales.
Vinasun also forecasts its post-tax profit for this year would be VNĐ95 billion, half of the figure in 2017. This is the lowest figure for the firm in the past nine years.
The earnings forecast would be submitted for approval at the firm’s annual shareholder meeting, which is scheduled for April 27. The company has not yet published its full-year financial report for 2017.
In 2018, the taxi company will focus on preserving its market share and keeping its business operating properly in the face of strong competition from rival ride-hailing applications.
In order to do that, Vinasun will buy at least 700 high-quality vehicles, develop its non-cash payment methods and diversify its business co-operation models.
In addition, Vinasun will propose the transport ministry categorise business activities of ride-hailing applications to assure a fair market for domestic taxi firms.
Vinasun has reported slower growth rates in both net revenue and profit since the two ride-hailing applications Uber and Grab entered Việt Nam in mid-2014.
From 2010-15, Vinasun’s net revenue increased from over VNĐ1.64 trillion to VNĐ4.25 trillion. The HCM City-based taxi company also recorded that its post-tax profit grew from VNĐ179.4 billion to VNĐ329.3 billion. In 2016, however, the company’s net revenue grew at a slower pace to reach VNĐ4.5 trillion, while its post-tax profit fell to roughly VNĐ312 billion.
In the first half of 2017, Vinasun performed even worse as its net revenue dropped 16 per cent year on year to VNĐ1.9 trillion and its post-tax profit declined by a third to VNĐ100 billion.
The taxi firm is listing nearly 68 million shares on the HCM Stock Exchange. Its shares have dropped gradually by nearly 60 per cent since September 28, 2016 to close Monday at VNĐ13,400 (60 US cents) per share.
Tougher taxi market after merger
According to Vinasun’s deputy general director Tạ Long Hỷ, the merger between Uber and Grab in Việt Nam could result in a monopolistic taxi market and local taxi companies could suffer from such a market condition.
After Uber and Grab merged, the total number of ride-hailing app vehicles had increased to 78,000 across the country and that number was much bigger than 20,000 traditional taxis in Việt Nam, he said.
“The number of high-tech taxis is accounting for 80 per cent of the overall market, which could lead to a market monopoly for the foreign firm. And it is the question on how the Government would solve the problem,” cafef.vn cited Hỷ as saying.
Traditional taxi firms would have to adapt to new market conditions, he said. Vinasun has developed an application to meet rising demand from customers and keep up with market trends.
In the near future, both taxi drivers and passengers would know exactly how much a fixed trip would cost based on the expected travel distance in the application, just like other ride-hailing firms, instead of using the meter to calculate the fares for passengers, he said. — VNS
Read original article here
Newer News
17/08 MCH finalising bonus share list
17/08 LPB: LienVietPostBank downgrades many business targets
16/08 FPT betting on M&A to go global
16/08 PVN considers merger of two biggest fertiliser firms
16/08 MSR: Masan buys tungsten facility
13/08 VNM: Vinamilk to spend over 170 mln USD on hi-tech dairy farm in Can Tho
09/08 Thaco announces strategic cooperation with HAGL
08/08 Vinalines to launch IPO on September 5
07/08 Vietnam Airlines, Vinamilk shake hands to provide 4-star service
06/08 BCG: Bamboo Capital sign condotel and villa deal
Older News
16/04 VTVCab cancels IPO after few investors show interest
12/04 VGC: Viglacera plans to reduce State ownership to 36%
12/04 HVN: Ministry to auction Vietnam Airlines’ share purchase rights
12/04 Vissan targets 18 per cent pre-tax revenue increase
10/04 SBT to buy back 83.5 million shares
10/04 Vingroup enters pharmaceutical industry
10/04 HPG: Hoa Phat exports wire drawing steel to Laos, RoK
07/04 Vietinbank and PG Bank deal collapses
07/04 Sabeco asked to hold shareholders’ meeting on personnel matters
06/04 TPBank heads to HSX at VND32,000 initial price
Newsletter Signup
Top Stories
VN Index to rise amid volatility, weak liquidity
VN stocks continue rallying
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Market Update
Last updated at 3:09:16 PM
VN-INDEX 916.06 +17.87/+1.99%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.