VEAM reports a decrease in profit for the first quarter of 2025
According to the consolidated financial report for the first quarter of 2025, the Vietnam Machinery for Agriculture and Rural Development (VEAM, UPCoM: VEA) witnessed an 11% decline in profit after tax, amounting to VND 1,278 billion, a decrease of VND 157.8 billion.
With a net profit of VND 1,260 billion, this quarter marks the lowest profit for VEAM since the third quarter of 2021.
VEAM attributes this decline primarily to a reduction in profit from joint ventures and associates, which decreased by 11%, equivalent to VND 136.9 billion.
This decrease in profit contrasts with a 16% growth in both revenue and gross profit during the same period.
As per the report, dividends and profit shares allocated to VEAM totaled VND 2,541.8 billion, with the majority contributed by Honda, amounting to VND 2,539.7 billion.
Honda’s contribution to VEA in this quarter was lower compared to the first quarter of 2024, where it stood at VND 2,922.2 billion, indicating a decrease of VND 382.5 billion.
Vietcap’s report suggests that the decline in VEAM’s profit during the first quarter of 2025 can be attributed to the performance of Honda Vietnam, despite a significant increase in motorcycle sales and a near-constant sales volume of passenger cars.
According to VAMA’s report, Honda’s car sales volume for the first quarter of this year decreased by 1%, reaching 6,084 units. Conversely, Honda’s report reveals that motorcycle sales during the first quarter of 2025 amounted to 596,345 units, reflecting a notable increase of 23.7%.
The securities company also noted that Ford Vietnam’s profit remained stagnant, despite experiencing growth in sales volume.
This outcome can be attributed to competitive pressures on selling prices from both brands, which overshadowed the contributions from new or upgraded models.
VEAM currently holds a 30% stake in Honda Vietnam, a 20% stake in Toyota Vietnam, and a 25% stake in Ford Vietnam. These joint ventures are considered “golden egg-laying geese” for VEAM, and a significant portion of their profits originates from these associations. For instance, in 2023, VEAM received dividends exceeding VND 6,800 billion from its associated companies, with Honda Vietnam contributing VND 5,844 billion, Toyota Vietnam contributing over VND 660 billion, and Diesel Song Cong contributing VND 253 billion.
In 2024, the dividends allocated to VEAM decreased to VND 5,736 billion, comprising VND 5,079 billion from Honda Vietnam, VND 261.5 billion from Toyota Vietnam, and VND 334.4 billion from Diesel Song Cong.
For the year 2025, VEAM has set a key objective to focus on industrial production growth, targeting an industrial production value of VND 3,758.3 billion, representing a 12% increase compared to 2024. The company has set a revenue target of VND 4,735.2 billion, an 8% increase from 2024, with an industrial production target of VND 4,242.1 billion, a 9% rise from the previous year.
Additionally, the Ministry of Industry and Trade, holding over 88% of VEAM, has instructed the company to explore the potential and capacity for participating in projects and supply chains, aligning with Vietnam’s initiatives regarding high-speed railway investments and the development of industries with an emphasis on localization.
VEAM is currently engaged in research and development for mechanical products tailored for the railway industry, including third-rail power supply systems or overhead DC power supply systems for urban railways, AC power supply systems for national and high-speed railways, rail accessories, and various mechanical components.
To actively contribute to railway projects, VEAM has proposed to the Ministry of Industry and Trade to manufacture products such as bolts, rail clamps, electric motors, gearboxes, brake systems, train carriage components, generators for infrastructure construction and train carriages, steel structures for railway infrastructure, and dynamic power supply systems, maintenance equipment, and maintenance depots.
The Pain of Q1: Oil & Gas Sector’s Struggles
The sharp decline in global oil prices in Q1 has taken a toll on businesses in the petroleum sector, with most companies experiencing a significant downturn compared to the previous year. This development aligns with the predictions made by several securities firms.
“KIS Securities Fined Over $52,000 for Misfiling Taxes”
The Vietnam Securities Joint Stock Company (KIS Vietnam) has been ordered by the Tax Authority to take remedial action on three counts. This includes a tax levy of over 491 million VND, late payment fees of over 458 million VND, and an adjustment to their deductions, reducing them by 301 million VND.
“VEAM and the 35-Year Odyssey: Shaping Vietnam’s Engineering Landscape.”
“After 35 years of transformation and growth, VEAM, formerly known as Vietnam Machinery and Agriculture Corporation, has evolved from 12 discrete mechanical plants into a formidable network of 25 subsidiary companies and branches. Today, VEAM proudly stands as a powerhouse in the manufacturing and trading of machinery and components, catering to the agricultural, forestry, fisheries, and transportation industries.”
The Ultimate Luxury Scooter Experience: Honda Introduces an Affordable, High-End Model for the Masses
Without any grand announcement or media fanfare, the Honda NS125GU, the latest scooter model from Honda China, has nonetheless created a stir in the automotive world. Its sleek design, modern features, and surprisingly affordable projected price point have captivated car enthusiasts and casual observers alike.
The Big Vimeco Shareholder Sells Off at a Loss, New Investors Scoop Up Bargain Shares.
In less than four months as a major shareholder, Phan Tran Hieu offloaded his entire stake of nearly 22% in Vimeco, incurring an estimated loss of over VND 25 billion. Following the transaction, Vimeco welcomed two new individual shareholders at a time when the company’s stock price took a significant hit.
