HCM Securities Corporation (sticker HCM) is seeking its shareholders’ approval to scrap the foreign ownership cap of 49 per cent to pave way for the company to be wholly foreign invested.

The matter will be up for discussion at HSC’s annual shareholders’ meeting on April 24.

In the document sent to shareholders before the meeting, the firm said that raising the foreign ownership limit could impose some restrictions on the business, but it could also boost the liquidity of the company’s shares, and increase its ability to raise capital when required.

HSC is the second largest brokerage firm on the HCM Stock Exchange in terms of market share, with 11.2 per cent in the last quarter of 2016. It aims to raise its brokerage market share to 12.3 per cent this year.

The company is expected to raise its net profit target in 2017 to VND361 billion (nearly US$16 million), up 19 per cent year-on-year. Its total revenue target is set 23 per cent higher than last year, of which income from brokerage services and margin lending account for 45 per cent and 41 per cent, respectively.

The return on average equity (ROAE) ratio is targeted at 14.7 per cent, higher than last year’s 13 per cent, and the earnings per share (EPS) is estimated at VND2,645, up 10 per cent year-on-year.

The company also plans to raise its 2016 cash dividend rate from 12 per cent to 17 per cent. The first payment of 5 per cent was made on January 12 this year.

In 2016, HSC posted a revenue of VND824 billion and net profits of VND304 billion, up 39 per cent and 43 per cent year-on-year, respectively. – VNS