On June 09 2017, the top 50 best performing companies in Vietnam in 2016 had convened at a conference organized by Investment Bridge Magazine at Gems Center, Hochiminh City. These companies are shortlisted from listed companies on Hochiminh Stock Exchange (HOSE) and Hanoi Stock Exchange (HSX) by the end of 2016, after going through 2 stringent reviewing rounds jointly conducted by Investment Bridge Magazine and Thien Viet Securities, with the advisory committee comprised of professionals at Havard Business School. The 2 reviewing rounds were as follows:
1st Round: Eligibility
The listed company must satisfy all of the following criteria:
- Market Capitalization as of Apr 03, 2017 must exceed VND 1,500 billion,
- Revenue of FY14, FY15, FY16 must exceed VND 250 billion,
- After-tax profit of FY14, FY15, FY16 must exceed VND 25 billion.
There were 103 eligible companies.
2nd Round: Ranking
These 103 companies then ranked according to 3 ratios:
- Compounded annual growth rate of revenue (weight: 35%),
- Average Return on equities (RoE) (weight: 35%),
- 2014-2016 Stock return (weight: 30%).
For each ratio, each company would receive different score based on its principal business (classified according to Industry Classification Benchmark – ICB). The score was then multiplied with its respective weight and summed up to reach the final score for each company. The company was then ranked based on this final score. Top 50 companies are those with the highest scores.
VINH HOAN CORPORATION (HOSE: VHC) was ranked 17th in Top 50, with its impressive business results and share performance (average stock return 2014-16: 320.9% & ROE: 22%). This is the 4th year in a row Vinh Hoan made into this list.
(Photo credit: Vinh Hoan)