On June 07, 2018, executives of Vietnam’s Top 50 companies with best business performance in 2017 had convened at a conference organized by Nhip cau Dau tu Magazine at Gems Center, Hochiminh City. These companies are cherry-picked from companies listed on Hochiminh Stock Exchange (HOSE) and Hanoi Stock Exchange (HSX) by the end of 2017, after going through 2 stringent reviewing rounds jointly conducted by the Magazine’s editorial board and Thien Viet Securities. The 2 reviewing rounds were as follows:
1st Round: Eligibility Test
The listed company must satisfy all of the following criteria:
- Market Capitalization as of Apr 02, 2018 must exceed VND 1,500 billion
- Revenue of FY15, FY16, FY17 must exceed VND 250 billion
- After-tax profit of FY15, FY16, FY17 must exceed VND 25 billion
There were 124 eligible companies.
2nd Round: Scoring and Ranking
These 124 companies then ranked according to 3 ratios:
- Compounded annual growth rate of revenue (weight: 35%),
- Average Return on equities (RoE) (weight: 35%),
- 2015-2017 Stock return (weight: 30%).
For each ratio, each company would receive a certain score based on its principal business (classified under Industry Classification Benchmark – ICB). This 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 were top 50 highest scorers.
VINH HOAN CORPORATION (HOSE: VHC), with its impressive business results and share performance, had made into this list 5th year in a row.