The big stock guy tumbled in profits
(VnExpress) 5 out of 6 securities companies with trillion dong in revenue saw a drop in profit in the first 9 months.
Financial statements of securities companies in the third quarter continued to show strong differentiation in business activities. The leading companies in the stock brokerage market share continue to face difficulties, influenced by the movements of the general market. Meanwhile, companies that dominate their respective market segments, such as bonds, derivatives, and companies backed by foreign capital, continue to increase pressure on the top group with double-digit profits.
SSI Securities Company - the market leader in brokerage on HNX and Quarter III HoSE - recorded the first 9 months consolidated revenue dropped by 17% to 2,330 billion dong. Once the most important business segment, brokerage activities only brought in more than VND 430 billion in revenue for SSI, a half decrease compared to the same period in 2018.
Among the top 5 HoSE brokerage market share in the third quarter, except for Mirae Asset which is a new factor with the backing of the Korean parent corporation, the remaining three domestic companies are Ho Chi Minh City Securities Company (HSC), and the Securities Company. VNDirect and Ban Viet Securities Company (VCSC) both dropped sharply. HSC's revenue was just over VND 1,100 billion in 9 months, down 41% yoy, VNDirect and VCSC's revenue also decreased by 5% and 21% respectively.
According to SSI, this result reflects the adverse effects from the context of the third quarter market has not improved much compared to the first half.
Average liquidity was only about VND 4,900 billion, down 6% over the same period last year. The escalation of the US-China trade war, concerned with unpredictable risks, investors in the world tend to switch to investing in safe assets which have a negative impact on market movements. market and investor psychology. Foreign investors were net sellers in many key stocks, the number of new open accounts not as high as before also partly affected the cash flow.
Thị trường biến động bất lợi là lý do nhiều công ty chứng khoán top đầu giải thích kết quả kinh doanh sụt giảm. Ảnh: Dũng Minh
Among the top 10 securities companies with the highest revenue in 9 months, only three cases increased, including VPS, TCBS and Mirae Asset Vietnam.
VPS, formerly known as Vietnam Prosperity Securities Company (VPBS), is not in the top of the brokerage market share but a phenomenon when it becomes the second largest company in terms of revenue. According to the 3rd quarter financial report, VPS brokerage revenue is only nearly 175 billion dong, but profit from financial assets recorded through profit / loss (FVTPL) is over 1,200 billion dong, revenue from private investment is about VND 1,200 billion. Financial advisory also increased by over 40% to nearly 260 billion dong.
Mirae Asset, a Korean securities company, is the biggest counterpart to the market leader in brokerage market share. With the backing of the parent company with large capital, Mirae Asset became one of the three securities companies with the highest charter capital in the market. By the end of the third quarter, the company also entered the top 5 brokerage market share on HoSE. In 9 months, the biggest contribution to Mirae Asset's revenue was margin lending with interest from loans and receivables of nearly 380 billion dong, nearly three times higher than the same period.
TCBS, the market leader in bond issuance, continues to make a fortune thanks to the boom of corporate bond channels. According to the financial report, TCBS earned over 490 billion dong of guarantee business revenue, issuing securities, accounting for nearly half of the total revenue in the first 9 months.
Similar to revenue, the top 10 securities companies with the highest 9-month pre-tax profit also tumbled sharply. TCBS surpassed SSI to become the highest profitable securities company, with VND 864 billion, up 21%.
SSI, HSC, VCSC - the top three companies in terms of brokerage market share - also ranked first in the declining profit in the first 9 months. Activities associated with the general trend of the market made this trio affected by less positive developments. SSI's profit dropped by 37% to 687 billion dong, and HSC and VCSC's profits also dropped by 50% and 29% respectively.
According to SSI's financial statements, operating expenses of the company decreased by more than 33%, doubling the rate of revenue decline, but financial expenses were pushed up, leading to a sharp decrease in profit. In 9 months, financial expense of SSI increased by 55% in the same period, mainly interest expense.
In the lower group, the rankings also have a disturbance when some companies reduce interest rates too quickly. VCBS's profit in the first 9 months dropped by 42%, BSC also dropped by 50%, making these two companies out of the top 10 in profit. VNDirect - ranked third in the brokerage market share in the third quarter of HoSE - also reported a 30% drop in profit, to the seventh position among the top 10 securities companies with highest profits in 9 months.
In addition to TCBS, which reported higher profits thanks to its own niche, Mirae Asset's profits also increased sharply and were in the top 5 markets. In the lower group, MBS and FPTS also recorded an increase, though not as dramatically as in the first 6 months.