Viet Capital Securities Company (VCSC) will focus on investment banking in 2018, a sector expected to contribute VND458 billion (US$20.3 million) to the firm’s total post-tax profit this year.

VCSC targets VND1.7 trillion in total revenue this year and VND1 trillion in pre-tax profit, a yearly increase of 11 per cent and 26 per cent, if the benchmark VN Index ended above the 1,000-point level at the end of this year.

If the VN Index falls below 500 points, VCSC would record VND250 billion in pre-tax profit, the firm’s management board said at the annual shareholder meeting this week.

Besides investment banking, other core sectors that VCSC will focus on include trading brokerage (VND491 billion), stock investment (VND444 billion) and proprietary trading (VND324 billion).

The company forecast its pre-tax profit in the first quarter of 2018 at VND400 billion, 40 per cent of the full-year prediction. VCSC will make a 15 per cent dividend payout for its performance in 2018.

Foreign ownership lifted off

VCSC also plans to remove the cap of foreign ownership, allowing foreign investors to purchase up to 100 per cent of the company’s shares.

The brokerage company also plans to sell all treasury shares to its current employees for VND20,000 per share, and offer employee-stock-ownership-plan shares to its employees for a similar price level.

The company will also issue 42 million tradable bonus shares for its existing shareholders at an issuance ratio of 35 per cent.

VCSC expects the share sales and issuance will help increase its charter capital to VND1.63 trillion and reduce its bank debts in 2018.

The company also hopes to rank among the top five brokerage firms with the largest market share in 2018, improve its position in the derivatives market and provide secure, financially-healthy instruments for its clients. — VNS