Securities companies have recorded growth in eight-month business results amid the COVID-19 pandemic, while stock prices keep rising as investors find opportunities in this group.
Although Viet Nam's stock market witnessed a strong correction in July and is in a sideways phase, the VN-Index still increased by 20.62 per cent in the first 8 months of this year.
Market liquidity continued to grow with the average trading value of the whole market at about VND23.79 trillion (US$1 billion) per session, 3.2 times higher than the average in 2020.
Particularly in August, HOSE set a record on August 20 with a trading value of VND38 trillion, the highest in the past 21 years, equivalent to a trading volume of nearly 1.2 billion shares.
With the above market movements and liquidity, this is a great business condition for the securities industry.
SSI Securities Joint Stock Company reported pre-tax profit of VND1.87 trillion in the first 8 months of the year, higher than the initial plan. In the first half of the year, SSI recorded a pre-tax profit of VND1.23 billion, so in two months, SSI recorded an additional VND650 billion in pre-tax profit.
SmartInvest Securities Joint Stock Company (AAS) announced 8-month revenue of VND467 billion and pre-tax profit of more than VND100 billion, fulfilling 85 per cent of the revenue target and 22 times higher than the profit target.
In July, the company successfully completed the issuance of 49 million private shares, raising the charter capital from VND310 billion to VND800 billion.
On September 27, 2021, AAS will hold an Extraordinary General Meeting to approve the 2021 dividend payment plan of 30 per cent in stock or cash, and adjust the profit plan for 2021 from more than VND4.8 billion to VND200 billion, while keeping the revenue target unchanged.
On the stock market, AAS has recently had a pretty good price increase. Since the beginning of August, it has recorded an increase of 32 per cent.
VNDIRECT Securities JSC (VND) announced 7-month revenue of more than VND2.2 trillion, completing more than 86 per cent of the yearly plan, profit after tax of VND1.1 trillion, 20 per cent higher than the whole year’s plan.
With this result, the Board of Directors of VND expect to consult shareholders on the adjustment of business targets. VNDIRECT sets a new plan with revenue of VND3.95 trillion, up 55 per cent; profit after tax of VND1.6 trillion, up to 82 per cent compared to the original plan.
In the first half of the year, the boom of the market helped many securities companies fulfil or exceed the full year’s plan, such as BIDV Securities (BSC) which recorded a pre-tax profit of VND216 billion, exceeding 20 per cent of the yearly plan; SHS Securities Co (SHS) with VND722 billion, completing 96 per cent of the plan.
Tan Viet Securities In (TVSI) reported 6-month revenue of VND1.4 trillion, up 207 per cent over the same period last year, exceeding the whole year’s plan. Profit before tax reached VND273.5 billion, up 162 per cent over the same period last year, exceeding by 16 per cent the plan for the whole of 2021.
TVSI also completed increasing its charter capital from VND1.08 trillion to VND2.64 trillion in July.
Tri Viet Securities Joint Stock Corporation achieved profit after tax of VND163 billion in H1, exceeding 36 per cent of the yearly plan.
In August, TVB completed increasing its charter capital to VND1.07 trillion, supplementing resources to boost securities brokerage, investment banking and derivatives operations.
In the favourable stock market scenario, TVB plan to exceed the adjusted business plan with an expected profit of VND350 billion.
With good business prospects, securities stocks have become the destination of cash flow, many stocks recorded strong gains. — VNS