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VNDIRECT SECURITIES CORPORATION

VNDIRECT SECURITIES CORPORATION


Project Description

OVERVIEW

VNDIRECT Securities Corporation (VND) was established in 2006. The Company has its business in securities brokerage and depository, financial corporate consultation, proprietary trading, securities issuance guarantee, and porfolio management. In 2020, Revenue from brokerage services is VND478 billion, increases by 42.57% y-o-y. Margin loan/Equity has a value of 112.55%. Profit from FVTPL has a value of VND492 billion, increases by 171.67% y-o-y. Profit from FVTPL accounts for 57.02% of the profit before tax. Income before tax has a value of VND863 billion increases by 79.86% y-o-y. Returns on equity (ROE) is 19.71%. VND has been listed and traded on Ho Chi Minh Stock Exchange (HOSE) since August 2017.

MAIN BUSINESS

  • Securities brokerage and depository;
  • Financial corporate consultation;
  • Proprietary trading;
  • Securities issuance guarantee;
  • Porfolio management;

MARKET POSITION

  • Brokerage 2020: Profit from brokerage services is equal to VND284 billion, increases by 57.26% y-o-y and contributes 32.90% to the total profit before tax.In the derivative market, VND is ranked among the Top 3 with 8.74% of derivative brokerage markeshare. The Company stands among the Top 2 with 9.53% of stock brokerage marketshare in UPCOM. Revenue from brokerage services is at VND478 billion, increases by 42.57% y-o-y. The Company stands among the Top 5 with 7.19% of stock and fund certificate brokerage marketshare in Hose. VND is ranked among the Top 3 with 7.11% of listed stock brokerage marketshare in HNX.
  • Loan provided for customers 2020: Margin loan has a value of VND4304 billion, increases by 55.01% y-o-y. Loans provided for customers is at VND4706 billion, increases by 63.00% y-o-y. Loans provided for customers/Current assets has a value of 36.78%. Margin loan/Equity is 112.55%.
  • Underwriting and issuance agency services 2020: Profit from underwriting and issuance agency services is equal to VND35 billion, increases by 46.57% y-o-y.
  • Proprietary trading 2020: Financial assets at fair value through profit and loss (FVTPL) stands at VND1054 billion, decreases by -29.51%compared to the same period of last year. Profit from FVTPL is at VND492 billion, increases by 171.67% y-o-y. Profit from FVTPL accounts for 57.02% of the profit before tax. Profit from AFS is VND55 billion, increases by 171.01% y-o-y. Available-for-sale financial assets (AFS) is VND2964 billion, increases by 278.52% y-o-y.
  • Business performance 2020: Net profit margin is at 32.94%. Gross profit margin is equal to 75.21%. Returns on equity (ROE) is 19.71%. Income before tax is at VND863 billion increases by 79.86% y-o-y. Returns on assets (ROA) has a value of 5.34%.
  • VND, is one of the first securities firms, which have successfully implemented SWIFT connection solution with Deutsche Bank to provide services for foreign customers since July 2013.

GROWTH STRATEGY

  • Developing brand on large-scale through the network of customer service centres;
  • Developing professional financial consultants teams;
  • Attracting organizational shareholders with adequate experience and strong financial capacity;
  • Researching and developing new financial products for individual customers;
  • Developing and providing one-stop services for corporate customers, e.g., M&A and IR;

RISK

  • The increasing number of securities firms has led to competitive pressures in popular segments such as brokerage, corporate finance reform, and investment advisory. The fierce competition required the Company to continue to invest more in human resources and technology to maintain and improve its market share, thus facing higher costs of operations.
  • The amendment of Circular 210 reduces the initiative of companies in mobilizing other sources of capital. This will negatively affect the market in general and on the other hand, will put pressure on securities firms.