After strong growth in 2021, securities companies have set mixed earning targets this year.

Achieving pre-tax profit of VND534 billion (US$23.3 million) last year, Viet Dragon Securities Co (VDS) sets a pre-tax profit target of VND504 billion this year, down 5.5 per cent. This plan is based on the forecast that VN-Index this year fluctuates around 1,340-1,750 points and the average liquidity is VND25 trillion to VND30 trillion per session.

FPT Securities Joint Stock Company (FTS) sets a revenue target of VND1.09 trillion this year, down 3.7 per cent year-on-year and pre-tax profit down 6.3 per cent, to VND680 billion. Viet Capital Securities (VCI) approved the plan with revenue of VND3.24 trillion, down 13 per cent and pre-tax profit of VND1.9 trillion, a slight increase of 2.7 per cent compared to 2021.

Some other securities companies have set more optimistic targets.

Thanh Cong Securities Joint Stock Company (TCI) set a profit target of VND222 billion, up 2.3 per cent.

Smart Invest Securities (AAS) expects revenue to reach VND1.2 trillion, up 25 per cent, profit after tax is estimated at VND480 billion, up 27 per cent. Phu Hung Securities (PHS) plans to achieve revenue of VND604 billion and profit after tax of VND160.5 billion, up 19 per cent and 14 per cent, respectively from the previous year's results.

After restructuring and witnessing strong growth, Tien Phong Securities (TPS) sets a revenue target of VND1.98 trillion, profit before tax of VND500 billion, up 46 per cent and 85 per cent, respectively compared to 2021.

Securities companies forecast that the stock market is still an investment channel to attract investors, but organisations and individuals have to focus more on recovering and promoting production after the pandemic.

According to Viet Capital Securities (VCI), the VN-Index will reach 1,550 points by the end of 2022.

Nguyen Mien Tuan, Chairman of the Board of Directors of Viet Dragon Securities (VDS), said that inflation exploded around the world and spread to Viet Nam, thereby affecting the stock market. Not to mention, the stock price level is at a high level, which is not favourable for the proprietary trading of securities companies.

According to Tuan, in the current conditions, the proposed plan is positive. "We will try our best to fulfil the plan,” Tuan said.

Tran Son Hai, General Director of Tien Phong Securities Co., the full-year profit plan seems to be modest compared to the results of the first quarter of VND300 billion.

“After June, when the company has finished raising capital, it can adjust the profit plan accordingly,” Hai said.

“In addition to revenue from consulting services for bond issuance, Tien Phong Securities will promote segments such as stock brokerage, warrant offering, derivatives trading as well as proprietary trading,” he said.

Many securities companies have planned to raise capital. In previous years, a securities company would be unlikely to have a capital of VND1 trillion, now there are companies with the capital size of a mid-sized bank, such as SSI Securities at VND15 trillion and VNDirect Securities with VND12 trillion.

Many small securities companies also plan to increase capital. Smart Invest wants to increase to VND5 trillion, DNSE Securities to VND3 trillion, and APG Securities to VND4 trillion.

It is not possible to take the performance results of a year with many favourable conditions to set a step-by-step plan for the following years.

As for AAS, it is expected that the entire amount of money raised will be allocated to the company's activities, including investing in valuable papers in the market, margin trading and securities underwriting and issuance activities.

Securities companies are actively adding financial capacity, because, in addition to increasing the ability to provide margin, it also opens up business opportunities in other areas, with many other products. VNS