AsemconnectVietnam - SHS Securities reported a profit of VND197.2 billion in 2022 after the audit; VietinBank Securities (CTS) sets a profit target of more than VND230 billion in 2023; VIX Securities (VIX) expected to increase profit after tax by 73.1% to VND540 billion in 2023; Nhat Viet Securities plans to increase capital 3 times to VND2,400 billion; Rong Viet Securities estimated profit over VND77 billion, planned profit before tax of nearly VND271 billion in Q1/2023; Agriseco signed a comprehensive cooperation agreement with Agribank.

SHS Securities
Saigon - Hanoi Securities Joint Stock Company (SHS) has just announced its audited financial statements for 2022 with operating revenue of VND1,542.5 billion, down 46.7% compared to 2021.
In 2022, VN-Index decreased by 32.8% compared to the end of 2021 and is one of the most negative stock indexes in the world. HNX-Index decreased by 56.7%, UPCoM-Index decreased by 36.4% compared to the end of 2021.
Many key stock groups of the market such as real estate, securities, and banks all plummeted when they were negatively affected by inflation, rising interest rates both in the world and in Vietnam, especially from events in the bond market. The liquidity of the whole market decreased by 23.5% due to the disruption of cash flow and investors were risk averse before unusual events.
In that context, securities companies are strongly affected. Saigon - Hanoi Securities Joint Stock Company (SHS) has just announced its audited financial statements for 2022 with operating revenue of VND1,542.5 billion, down 46.7% compared to 2021. Income from lending and receivable activities reached VND567.8 billion, down 17.5% and accounted for the largest proportion, revenue from brokerage activities decreased 40% to VND332.8 billion, profit from natural revenue was VND464.4 billion, down 68.7%. Financial consulting activities increased by 6.9 times compared to 2021 to VND83.6 billion.
Operating expenses increased by 30.7% yoy to nearly VND1,089 billion, of which the loss from financial assets recognized through profit/loss (FVTPL) was VND725 billion while the same period was 91.5 billion (accounting for 66.6% of SHS's total operating expenses). Many of the proprietary trading losses were actually deducted from profits because previous quarters had recorded profits when market prices were high.
Financial expenses increased by 9.54% to VND163.3 billion while SHS's administrative expenses decreased by 40.4% to VND98.2 billion.
SHS recorded a pre-tax profit of VND197.2 billion, after deducting taxes and fees, the profit after tax in 2022 is VND162.2 billion. With this result, SHS will soon be brought back to the list of securities with margin loans by the Securities Commission after being excluded in August 2022.
Compared with the business plan with VND3,428 billion of total revenue and VND2,025 billion of pre-tax profit, by the end of 2022, SHS has achieved 45% and nearly 10% of the whole year target, respectively.
As of December 31, 2022, the company's total assets are at nearly VND10,900 billion, of which the value of FVTPL's assets is more than VND4,300 billion - an increase of 61% compared to the beginning of the year (including stocks and bonds). Outstanding loans decreased sharply by 60% to more than VND2,355 billion.
SHS's equity increased by nearly 56% YTD to VND9,436 billion, including VND765 billion of undistributed profit after tax. In 2022, SHS successfully increased its charter capital from over VND3,252 billion to over VND8,131 billion. In contrast, liabilities dropped sharply from VND4,855 billion at the beginning of the year to more than VND1,464 billion (more than 93% is short-term debt).
VietinBank Securities
On March 27, 2023, VietinBank Securities Joint Stock Company (CTS) held the 2023 Annual General Meeting of Shareholders to approve a profit target of VND230 billion, a sharp increase compared to the previous year.
Tran Phuc Vinh, Chairman of the Board of Directors of Vietinbank Securities, said that the stock market in 2023 still has many difficulties and challenges. The market needs more time to accumulate closely with a narrow range to create a solid foundation before it can create a new trend. From a valuation perspective, the market P/E in 2023 is forecast at 9.2 times, up to 35% lower than the average P/E of the market in the period 2009-2022 (14.16 times). With interest rates maintained at a high level, it will be difficult to attract new capital flows or return to the stock market, so adjustment pressure and shaking will continue in the first half of 2023.
“Based on the assessment of the stock market in 2023, CTS sets a profit target in 2023 at VND230.7 billion. In particular, the Company will have solutions towards expanding market share, increasing brokerage revenue, increasing margin lending and especially focusing on strongly developing the M&A segment," said Vinh.
In 2022, CTS achieved revenue of VND872 billion and profit after tax of more than VND71 billion. CTS's margin balance at the end of 2022 is at VND1450 billion. According to Mr. Vu Duc Manh, General Director of CTS, the Company's margin balance in 2023 is expected to increase to serve customers but under control and attracts customers. In order to strengthen lending activities, the Company has applied a loan fee rate for customers who are trading with an interest rate of 11.5%, and for customers opening a new account at an interest rate of 12.5%.
In addition, the Company will take full advantage of its parent bank VietinBank to expand its customer base to provide M&A consulting services and corporate financial advisory services. In 2023, CTS will strengthen connections with domestic and foreign banks to increase limits, diversify loan terms... to optimize capital costs.
VIX Securities
VIX Securities Joint Stock Company (code VIX - HoSE) sets a strong growth plan in 2023 and pays dividends and bonus shares at the rate of 15% in 2022.
VIX Securities announced the document of the 2023 Annual General Meeting of Shareholders, the meeting is expected to be held on April 15 in Hanoi.
In 2023, VIX Securities sets a business plan with a pre-tax profit of VND676 billion, an increase of 79.6% over the same period and an expected profit after tax of VND540 billion, up 73.1% compared to the same period last year.
Regarding business orientation and market assessment in 2023, VIX Securities said that it is forecast that the world situation will continue to be difficult due to the consequences of armed conflicts; the trend of monetary tightening to cope with inflation will be prolonged and complicated…
Factors affecting the VN-Index may be global inflation and the level of profit decline of enterprises in Vietnam. In which, the decline in profits of enterprises will be a major influencing factor to Vietnam's stock market, leading to lower liquidity than before, high margin interest rates, and narrow cash flow into the market.
Therefore, investing in the market will be more difficult for investors; the deployment of business activities will also be limited, negatively affecting the revenue and profit of securities companies.
Regarding dividends, in 2022, the Company submits to shareholders a plan to pay a stock dividend at the rate of 5%.
In addition to paying 5% stock dividend, the Company also presents shareholders to award shares at the rate of 10%, the source of capital is equity. Thus, it is estimated that the Company will issue dividends and bonus shares at the rate of 15%, respectively, shareholders owning 100 shares will receive 15 new shares.
The implementation time of dividend payment and stock bonus is expected in the second quarter of 2023. Thus, if the issuance is successful, the charter capital will increase from VND5,821.4 billion to VND6,694.6 billion.
Another notable content, the Company submitted to shareholders the plan to dismiss the member of the Board of Directors for Ms. Nguyen Thi Tuyet; Ms. Nguyen Thi Hong Hanh from office of BOD member; and dismissed the member of the Supervisory Board for Ms. Ngo Thi Hong Duyen.
On the contrary, the Company also plans to elect 2 additional members of the Board of Directors and 1 member of the Supervisory Board. However, the Company has not announced the new candidate's identity.
Nhat Viet Securities
At the 2023 Annual General Meeting of Shareholders, Nhat Viet Securities (VFS) approved a plan to sharply increase its charter capital to VND2,400 billion and transfer registration for trading shares on Upcom to listing shares on HOSE or HNX.
In 2022, Nhat Viet Securities (VFS) recorded a revenue growth of nearly 26% compared to 2021 to reach VND 170 billion and exceeded 12% of the 2022 plan. The main driving force came from the brokerage and financial services with growth of 49% and 48% respectively over the same period.
In 2022, although VFS's profit after tax is only nearly VND63 billion, down 30% compared to 2021, but this is considered a positive business result in the context of the stock market going down causing difficulties for the whole industry.
Business plan to grow with the driving force of brokerage and financial services
In the context that the stock market is expected to be more prosperous in 2023, revenue and profit after tax are expected to reach VND230 billion and VND80 billion, respectively, up 35% and 27% compared to 2022. In addition, the securities brokerage and financial services segments are focused on development with expected revenue growth of 73% and 65% in 2023. In addition, VFS also plans to expand into a derivative product to diversify the products offered to investors, contributing to attracting more customers.
Increase charter capital to VND2,400 billion and change the listing floor
VFS plans to increase its charter capital to VND2,400 billion with the plan of issuing shares for private placement and issuing shares to existing shareholders at the ratio of 1:1. The additional capital is expected to be used by the company for securities trading and margin lending.
Besides, Nhat Viet Securities aims to move the listing of VFS shares to the HSX or HNX. Changing the stock exchange registration helps the company improve its position and have more opportunities to attract investment capital.
With this capital increase, VFS will be in the top 20 securities companies with the largest charter capital on the stock market and promises to be an important driving force for the company's sustainable development in the coming years.
At the same time, the election to replace members of the Board of Directors and the Supervisory Board at the General Meeting of Shareholders in 2023 is expected to bring a new wind to the development of the company in the future.
Rong Viet Securities
At the General Meeting of Shareholders of Rong Viet Securities (VDS), Mr. Nguyen Mien Tuan, Chairman of Rong Viet's Board of Directors, said that the estimated results were relatively close to the plan, with VND150 billion in revenue and VND77.5 billion in pre-tax profit, equal to about 28% of the whole year plan in 2023.
Efforts to bring stocks out of control in the first half of 2023
At the end of the first quarter of 2023, in the context that the economy and the stock market were still facing many difficulties, the average liquidity of the whole market reached VND11,337 billion/session, a decrease of 63.7% compared to the first quarter of 2022 (VND31,215 billion/session), affecting all business activities of Rong Viet. However, with the VN-Index recovering 5.71% compared to the beginning of the year, investment activities of Rong Viet had a positive recovery.
Profit before tax in the first quarter of 2023 was recorded at more than VND77 billion, completing 27.8% and following the progress of the business plan in 2023. Accordingly, as of March 31, 2023, profit after tax has not yet been completed. Rong Viet's distribution has returned to a positive value, clearing all accumulated losses.
Revenue structure including brokerage and margin lending accounted for a large proportion, about VND112 billion. Other segments are profitable, besides asset management (through a fund management company due to its modest size, a slight loss of several hundred million).
Mr. Tuan said that the first quarter results of Rong Viet were quite positive, showing that they have overcome difficulties and are profitable again, all accumulated losses. The company continued to make efforts to maintain effective business operations in the first 6 months of the year, to let the shares get out of control to get margin.
In 2022, Rong Viet achieved nearly VND861 billion in revenue, down 18.3% compared to 2021, operating expenses increased sharply by 95% to VND1,013.8 billion, making profit after tax negative VND115 billion. The sudden increase in expenses was mainly due to the provisioning to evaluate the decrease in the proprietary trading portfolio at the end of the period.
Excluding expenses for provisioning for proprietary trading, Rong Viet's business results in 2022 recorded a consolidated pre-tax profit of VND95.5 billion.
As of December 31, 2022, Rong Viet's total assets reached VND4,254 billion, a slight increase from VND4,033 billion at the beginning of the year. During the year, the Company successfully increased its charter capital, recording equity at the end of 2022 reaching VND2,082.9 billion, up 26.5% compared to VND1,645.9 billion at the beginning of the year.
The Company's financial position is maintained healthy with the financial adequacy ratio at the end of 2022 reaching 433.6%, much higher than the regulations of the Ministry of Finance of 180%.
According to the assessment of the Board of Directors, during the year, the Company made efforts to complete two important groups of goals: strengthening the foundation and expanding the scale, through the return of charter capital to VND2,100 billion; put into operation 3 branches Vung Tau, Dong Nai and Binh Duong; increased capital of Rong Viet Fund Management Company to VND60 billion and was licensed to establish Rong Viet Investment Fund with capital scale of VND50 billion.
In addition, Rong Viet has been and continues to invest, focusing resources on digital transformation projects to optimize the operating system, increase customer experience and put into operation new business models on digital platforms such as smartDragon, eduDragon, new website... Rong Viet's foundation continues to be firmly consolidated, creating a premise for new development steps.
Rong Viet's efforts have been recognized through many domestic and foreign awards such as "Best Trading Platform in Vietnam 2022" (Best Trading Platform) - Global Banking & Finance Review (GBFR) Award, "Where best work in Asia 2022” – HR Aisa Award, “Typical M&A consulting organization 2021 - 2022” at Vietnam M&A Forum 2022.
Profit before tax plan grew strongly, nearly VND271 billion
With the assumption that the VN-Index will fluctuate between 930 - 1,270 points with the average liquidity of the whole market from VND13,000 - VND15,000 billion/session, Rong Viet plans revenue and expenses to be VND890.1 and VND619.3 respectively, profit before tax of VND270.8 billion. Expected dividend 5%/par value.
In 2023, Rong Viet will continue to strengthen and enhance the quality of its human resources, strive to stabilize capital to ensure business activities, and improve risk management capacity. In addition, the Company will promote the care of existing customers and develop new customers, promote the business activities of the branches in order to more effectively exploit the advantages of operating network in economically developed area.
With the brokerage and margin lending business, Rong Viet will prioritize training and developing human resources, enhancing customer care, sharing information, combining with products and services, Rong Viet's new technology for effective advice, suitable for the risk appetite of each investor.
The proprietary investment segment is expected to have better results in 2023. Accordingly, Rong Viet still takes the view of value investment as the foundation, chooses safe stocks, and has good growth prospects for the future, anticipate recovery opportunities in 2023.
With investment banking activities, in the context of the corporate bond market facing many difficulties, Rong Viet will continue to promote compliance in business processes, as well as focus on promoting the progress of projects. M&A consulting – the field is determined to play a key revenue generating role for investment banking activities in 2023.
Agribank Securities
With the signed cooperation agreement, Agriseco and Agribank will create favorable conditions for each party to access and use each other's services in the most convenient and effective way, with the quality and service fees ensure competitiveness in the market.
On April 6, 2023, within the framework of the Conference to review credit, capital sources, products and services in 2022 and manage the business plan in 2023 of the Bank for Agriculture and Rural Development of Vietnam ( Agribank) held in Da Nang, Agribank Securities Company (Agriseco) and Agribank signed a comprehensive cooperation agreement to expand the scope of cooperation, optimally exploit the potentials and advantages of the Parties, diversify products, services, increase utility and develop customers.
The signing ceremony between Agriseco and Agribank took place with the participation of leaders of both sides. On the side of Agribank, there was Chairman of the Board of Members Pham Duc An; General Director Pham Toan Vuong; Supervisory Board; Chief accountant; leaders of units at Head Office, regional representative office, Type I branch, Cambodia branch and affiliated subsidiaries. On Agriseco's side, there were Chairman of the Board of Directors Phan Van Tuan, General Director Le Son Tung, company leaders and leaders of specialized departments, branches.
With the signed cooperation agreement, Agriseco and Agribank will create favorable conditions for each Party to access and use each other's services in the most convenient and effective way, with the quality and service fees ensure competitiveness in the market. Agriseco will provide Agribank, Agribank staff and customers with a variety of securities products and services. At the same time, Agribank will deploy to provide deposit products, credit, payment services, etc. to Agriseco, Agriseco's staffs and customers. The two sides work together to build and develop a multi-service ecosystem of Banking - Securities - Insurance associated with a modern technology platform following the ongoing trend in the world as well as in Vietnam.
At the ceremony, Agriseco Chairman Phan Van Tuan, on behalf of Agriseco's leaders and staff, expressed his gratitude for the attention, direction and assistance of the Party Committee, Board of Directors, Board of Directors, Departments/Departments. at Agribank's Head Office and the cooperation and companionship of Agribank branches over the years. At the same time, we believe that the signing of the agreement will continue to open up opportunities for cooperation and development in both the size and quality of utilities, products and services to bring customers the best experiences; helping to improve the competitiveness, image and brand of Agribank and Agriseco; turning Agriseco into one of the three pillars (Banking - Securities - Insurance) according to Agribank's business orientation and strategy.
Currently, Agriseco has signed a cooperation agreement to provide securities services with 200 Agribank branches across the country, the cooperation results are increasing rapidly following the general development trend of the stock market. The cooperation helps Agribank branches increase service revenue, increase demand deposits; at the same time contribute to diversifying financial products and services to increase competitiveness in the market, creating favorable conditions to retain and attract more customers.
N.Nga
Source: VITIC/Tinnhanhchungkhoan