The historical visit of Microsoft’s president Bill Gates to Vietnam on April 22 has helped to sharply increase the price of stocks of the Corp for Financing and Promoting Technology (FPT) than ever. Within three days its share price jumped from 400,000 to 500,000 dong.
Securities investors analyse based on the company’s financial figures and the common trend of the development of informatics and information technology, it is likely the FPT’s share price will keep surging.
In the recent times, FPT has won many big contracts to supply informatics equipment, software and technical solutions to the government, ministries, departments and big corporations. Additionally, the company’s position and reputation has been strengthened since it is chosen the sole distributor and agent for many recognised computers firms in the world such as HP, Compaq, IBM, Microsoft, Samsung and Nokia.
The FPT’s audit report for 2005 say there is a strong increase in the business result with the after-tax profit of 225.8 billion dong or 86% rise compared with 2004, the revenue reaching over 14 trillion dong, increasing 61% compared with 2004.
Nguyen Hoang Hai-general secretary of financial investors association said: “FPT is a giant technology company and has managed to build its reputation on both domestic and foreign market. In particular, the company has been assessed to gain the development growth of 20 to 30% a year.”
The average profit growth speed of FPT will reach about 40% per year during next 10 years. Meanwhile, the average growth of profit of listed companies is only 15% per year.
Hai calculated FPT’s share price would climb to two million dong each if the company made an IPO and allow transference of shares. This is well proved in history that many made rich and became millionaires thanks to having bought a large number of Microsoft’s shares on early days.
The fever of stock price gets worse even on both formal and black market. Not only people having a knowledge of the stock market but also students, housewives and pensioners are in a hurry to buy shares.
Ton Tich Quy, deputy director of the Securities Training Centre said Vietnam’s stock market is so different from any stock market in the world, where investors buy shares without even bothering to try to fathom a financial report or profit predictions.
The paradox is that the amount of paper to trade remains unchanged in spite of a torrent of idle cash being pumped into the stock market pushing the VN Index to a record high of 632 points on April 25. Presently, at least five shares including the Refrigerating and Electrical Engineering Shareholding Co (REE), North Kinh Do (NKD), Kinh Do Corp (KDC), Vinamilk (VNM) and Sacom (SAM) have gained 10 times par.