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Business activities of securities companies in October 2023 

 Monday, October 30,2023

AsemconnectVietnam - Rong Viet Securities (VDS) earned VND320 billion profit in 9 months; FiinRatings announced the first credit rating for TPS at “BBB-” with a “Stable” rating outlook; HSC Securities (HCM): Profit in Q3/2023 reaching the highest level in the last 5 quarters; SSI reached over VND880 billion pre-tax profit in Q3/2023.

Rong Viet Securities (VDS)
Rong Viet Securities (VDSC - stock code VDS) has just announced its separate financial report for the third quarter of 2023 with pre-tax profit reaching VND113 billion.
Exceeded profit plan after 9 months of 2023
According to its separate financial report for the third quarter of 2023, Rong Viet recorded total revenue and expenses reaching VND255.4 billion and VND142 billion, respectively, pre-tax profit reached VND113.4 billion, 4.5 times higher compared to the same period in 2022.
Accumulated in the first 9 months of 2023, Rong Viet's total revenue will reach VND603.2 billion, equivalent to 92.7% of the same period in 2022 and completing 68.9% of the year's plan. Meanwhile, the Company's expenses decreased significantly thanks to the reversal of expenses for evaluating the reduction in the value of the investment portfolio, recorded at VND283.4 billion and only equal to 37.2% of the same period. Thanks to that, Rong Viet's 9-month accumulated pre-tax profit reached VND319.8 billion, after-tax profit reached VND252.8 billion, completing 118.4% and 117.1% of the 2023 plan, respectively.
Regarding the financial situation, as of September 30, 2023, Rong Viet's total assets reached VND5,134 billion, equity reached VND2,326 billion, an increase of 21.1% and 12.3% respectively compared to the end of 2022. Rong Viet's financial safety ratio continues to be maintained at a safe level and much higher than regulations, reaching 426.4%.
Regarding operating efficiency, Rong Viet's earnings per share (EPS) in the first 9 months of 2023 reached VND1,204. Targets of return on total assets (ROAa) and return on equity (ROEa) in 9 months reached 5.39% and 11.50%, respectively.
Put bonds into custody and trade
Recently, Rong Viet completed the second bond issuance in 2023 with a total successful issuance value of VND698.6 billion, equal to 99.8% of the total offering value. In August 2023, Rong Viet continues to offer the third batch of individual bonds worth VND900 billion. Currently, implementation progress is very good according to the plan, helping to balance finances and supplement capital to serve the Company's business activities.
With a reputation that has been affirmed through many separate bond issuances, especially in the period from the fourth quarter of 2022 until now when the requirements and standards set for issuing organizations are increasingly improving, as well as As investors' psychology and confidence in the market are strongly affected, Rong Viet maintains its position as one of the few units that fully meet standards and regulations and has successfully mobilized continuously many bond issuances, contributing to diversifying effective investment opportunities for Rong Viet's customers and investors.
Also in September 2023, Rong Viet will register bond depository at Vietnam Securities Depository and Clearing Corporation (VSDC) and register to trade on the individual corporate bond trading system at the Hanoi Stock Exchange (HNX) for the Company's outstanding bond codes. This is to meet new regulations of the Ministry of Finance, the regulatory agency in standardizing the individual bond market, increasing liquidity and ensuring maximum benefits for investors.
Promote strategic cooperation and digital transformation
Last September, Rong Viet and Ryobi Group (Japan) announced the signing of a Memorandum of Understanding (MOU) to expand strategic cooperation in the fields of investment, investment banking, and asset management and develop customer network.
At the signing ceremony, representatives of both sides committed to expanding cooperation to take advantage of each other's strengths and experiences. Specifically, Ryobi Group will actively grasp market information and investment opportunities introduced by Rong Viet. At the same time, Rong Viet commits to using its strengths to support Ryobi Group in finding suitable investment opportunities in the Vietnamese stock market.
Not only promoting business development cooperation, digital transformation activities to increase customer experience and infrastructure, technology security were also promoted by Rong Viet in the last quarter. The company has completed and put into operation many important digital transformation projects in the third quarter of 2023, notably two projects: Comprehensive Data Platform (Data Warehouse) and Management and Development System. Customer development (CRM). The CRM project is expected to provide useful solutions and tools to help Rong Viet's team of investment consultants comprehensively serve and care for customers, increasing satisfaction and experience a better one for customers.
The efforts and progress in Rong Viet's digital transformation strategy over the past time were recognized when recently, the Company was honored in the category "Typical technology and digital transformation products", along with the title "For the development of financial services" at the 2023 Financial Advisor Summit (VWAS).
Many outstanding events in the last quarter of 2023
In the fourth quarter of 2023, Rong Viet deploys many major events for customers, investors and the social community. The highlight is the promotion program "Busy Birthday - Filled with gifts" to express gratitude to customers and towards the 17th anniversary of the Company's establishment. The program takes place from October 9, 2023 to December 20, 2023, with 2 groups of technology and tourism awards. The total value of incentives and prizes of the program is up to more than VND1 billion.
Also in the last quarter of the year, the RongViet Invest 2023 contest coordinated by Rong Viet with 25 universities and colleges across the country officially entered the thrilling competition sections. The contest has so far attracted more than 4,000 students to register to participate, with two parts including investment knowledge and practical stock investment. The total value of prizes and gifts of the contest is up to nearly VND400 million, of which the student who won first prize in the practical investment contest received a bonus of VND50 million.
Rong Viet representative shared that this is a playground for students nationwide to have the opportunity to learn, orient their careers, and at the same time have experience as a real investor in the Vietnamese stock market. Students nationwide can still register to participate in the program until October 22, 2023.
Tien Phong Securities (TPS)
On October 6, 2023, Tien Phong Securities Joint Stock Company (TPS - stock code ORS) announced the results of its first credit rating by FiinRatings at "BBB-" with "Stable Outlook".
TPS's first Domestic Credit Rating Report was conducted by FiinRatings - one of the pioneering domestic credit rating units in Vietnam licensed by the Ministry of Finance, supported by the Asian Development Bank (ADB) and technical partner of S&P Global Ratings. The “Stable” rating outlook for TPS reflects FiinRatings' expectation that TPS will continue to benefit from its relatively important strategic role in the ecosystem of one of the major commercial banks in Vietnam, Tien Phong Commercial Joint Stock Bank (TPBank) in the medium term.
TPS is also expected to maintain its position in the market as one of the leading securities companies in investment banking operations. In addition, TPS's ability to mobilize capital is assessed at an appropriate level, continuing to play an important role in stabilizing the Company's liquidity position.
Up to now, TPS is one of the first securities companies to participate in evaluating and announcing credit rating results. The publication of credit rating results demonstrates TPS's effort to make information transparent to investors about the Company's operations, while complying with legal regulations and showing determination to build professional practices in the capital market in general and the bond market in particular.
It can be said that credit rating is a stepping stone marking the process of expanding the Company's business activities. TPS plans to continue diversifying operations based on brand advantages and existing platforms, improving customer service and bringing profits to shareholders, developing based on three main pillars: investment banking, stock brokerage and self-trading.
Credit ratings have become an important source of comparative information with reference value to help investors, partners and customers exploit potential and effectively manage credit risks when doing business cooperation. TPS's credit rating results are comprehensively evaluated by FiinRatings based on many factors such as business position, financial capacity, management efficiency, risk position, ability to mobilize capital and liquidity position in the next 12 - 24 months as well as placed in the context of macroeconomic prospects and stock market prospects. Long-term credit rating assessment results First-time issuer with "Stable" outlook supports TPS to continue building reputation, brand, image in the market while expanding investment capital mobilization channels for a strong development strategy in the future.
According to FiinRatings, the BBB- credit rating reflects FiinRatings' assessment of TPS's ability to meet loan obligations at a "relatively good" level according to the domestic credit rating scale published here. Proactively announcing credit ratings helps businesses have an advantage in negotiations and optimize capital mobilization plans for projects through capital market channels including corporate bonds in addition to bank loans.
Compared to international credit ratings, domestic credit ratings help investors classify credit quality more specifically and clearly among Vietnamese businesses, and are used by many domestic and foreign financial institutions. Used as a reference for investment activities, risk management and interest rate determination. This comes from the fact that the domestic credit rating scale has a wider range of scores from the highest level AAA (usually the Government bond rating) to the lowest level C and is not limited by the national rating ceiling.
Tien Phong Securities Joint Stock Company (TPS - code ORS) announced business results for the third quarter and accumulated for the first 9 months of 2023.
Accordingly, profit before tax (PBT) in the third quarter of 2023 of TPS reached VND71 billion, an increase of 10.2% compared to the second quarter of 2023. Accumulated, EBT of the first 9 months of 2023 reached more than VND208 billion, completing more than 90% of the profit plan for the whole year 2023.
Equity at the end of September 2023 reached more than VND2,477 billion, an increase of 2.4% compared to the second quarter of 2023, total assets of TPS recorded VND7,054 billion. Revenue from bond-related services such as securities custody continues to be one of the main drivers driving revenue growth for TPS. In 9 months, this activity contributed 39% of total operating revenue, reaching nearly VND881 billion in revenue, an increase of more than 3.1 times compared to the same period in 2022.
At the end of the third quarter, TPS's FVTPL financial assets reached VND2,310 billion, an increase of 47.7% compared to the end of the second quarter, mainly due to the increase in certificates of deposit to VND840 billion. Margin debt balance at the end of the third quarter reached VND842 billion, an increase of VND160 billion after 3 months thanks to promoting margin lending activities and stock brokerage activities when the stock market positively recovered.
In the third quarter of 2023, TPS continues to improve its capital mobilization capacity through the successful issuance of VND1,000 billion of bonds in the form of private individuals, maintaining the total outstanding bond balance as of September 30, 2023 of VND3,000.
On October 6, 2023, Tien Phong Securities Joint Stock Company announced the results of the Long-Term Credit Rating of the First Time Issuer by FiinRatings at "BBB-" with the outlook of "Stable" credit rating. BBB credit rating - reflects FiinRatings' assessment of TPS's ability to meet loan obligations at a "relatively good" level according to the domestic credit rating scale.
Up to now, TPS is one of the first securities companies to participate in evaluating and announcing credit rating results. The publication of credit rating results demonstrates TPS's effort to make information transparent to investors about the Company's operations, while complying with legal regulations and showing determination to build professional practices in the capital market in general and the bond market in particular.
HSC Securities (HCM)
Ho Chi Minh City Securities Joint Stock Company (HSC, stock code HOSE: HCM) announced pre-tax profit for the third quarter of 2023 reaching VND266 billion, an increase of 36% compared to the second quarter of 2023 and the highest level in 5 years.
Accumulated in the first 9 months of 2023, HSC recorded pre-tax profit of VND617 billion, completing 68% of the 2023 plan.
Revenue in the third quarter of 2023 reached more than VND636 billion, an increase of 20% compared to the second quarter of 2023, of which:
Revenue from securities brokerage activities reached VND224 billion, accounting for 35% of HSC's total revenue. In the third quarter of 2023, brokerage activities increased sharply due to improved market liquidity compared to previous quarters and at a higher level than expectations at the beginning of the year. HSC takes good advantage of the market's transaction growth to maintain market share and grow margin loan balance.
Revenue from margin lending activities reached VND 292 billion, equivalent to 46% of HSC's total revenue. As of September 30, 2023, outstanding margin loans reached more than 11,331 billion VND, an increase of 28% compared to the end of the second quarter of 2023 and an increase of 54% compared to the beginning of the year.
Revenue from proprietary trading activities reached VND110 billion, contributing 17% to HSC's total revenue. The results of proprietary trading activities are significantly affected by strong and unpredictable market fluctuations in the first 9 months of the year.
The corporate financial consulting segment recorded revenue of VND6 billion in the third quarter of 2023. The time to carry out consulting deals is often long, so the reported revenue in the accounting period does not fully reflect the business results of this activity.
As of September 30, 2023, HSC's total assets reached VND16,663 billion, equity reached VND8,133 billion. Earnings per share (EPS) in the first 9 months of 2023 reached VND1,083/share.
SSI Securities
According to the consolidated financial report of the third quarter of 2023, SSI Securities achieved VND1,972 billion in revenue and VND880 billion in pre-tax profit, up 44% and 112% respectively over the same period. Accumulated for 9 months, SSI achieved revenue of VND5,188 billion, consolidated pre-tax profit of VND2,204 billion, an increase of 21% and completing 87% of the whole year plan.
In the revenue structure, the self-trading segment prospered, increasing by 73% compared to the third quarter of 2022, reaching VND765 billion. In the third quarter of 2023, SSI listed 30 new warrant codes and the warrant trading market share reached 18% of the entire market's warrant trading value (a good increase from the average of 8% in the first half of the year); Brokerage increased by 58% to VND535 billion, brokerage market share in the third quarter of 2023 reached 10.59%; Interest from loans and receivables of SSI in the third quarter also increased by 6% over the same period last year to VND431 billion.
Operating costs also increased by 18% to VND653 billion, accounting for a large proportion of brokerage costs increasing by 33% to VND384 billion.
As a result, SSI's pre-tax profit in the third quarter of 2023 reached VND880 billion, 2.1 times higher than the profit achieved in the same period last year.
As of September 30, 2023, SSI's total assets reached VND55,282 billion, an increase of more than VND3,000 billion compared to the beginning of the year. Of which, outstanding loans reached VND15,269 billion, margin loans alone reached more than VND14,713 billion, an increase of more than VND1,600 billion compared to the end of quarter 2/2023.
FVTPL's self-trading portfolio and financial assets are more than VND29,600 billion, of which 475 billion are listed shares (HPG, SGN, VPB, STB...); nearly VND 729 billion of warrant risk-hedging securities; more than VND 10,530 billion in unlisted bonds and certificates of deposit of VND 16,000 billion.
Financial assets available for sale (AFS) recorded more than 860 billion VND, 2.2 times the number at the beginning of the year, including VND77 billion in OPC shares, VND40 billion invested in the mother and baby retail chain. Honey, more than VND53 billion invested in PAN Group Joint Stock Company and VND248 billion in other stocks.
N.Nga
Source: VITIC/Tinnhanhchungkhoan
 

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