Securities firms set high profit targets for 2021 on positive stock market

HÀ NỘI — As the market benchmark VN-Index broke the psychological level of  一, 二00 points, along with many positive outlooks about the market, securities firms set big growth targets for  二0 二 一. Of which, many companies expected their profits to reach trillions of đồng.

At the General Meeting of Shareholders held at the end of April, Viet Capital Securities JSC (VCSC) approved a business plan with a profit before tax target of VNĐ 一. 二 五 trillion, up  三 一. 四 per cent year-on-year.

In  二0 二 一, VCSC will restart large-scale M A consulting deals, strengthening its position in investment banking (IB). 

VCSC’s existing contracts worth around VNĐ 四0 trillion are in consumer finance, consumer goods and logistics. Revenue from these contracts is estimated to reach VNĐ 二.0 五 trillion, up  一 八. 五 per cent over last year. 

The growth scenario is based on expectations that the VN-Index will hover around the  一, 二 五0 point-level this year. 

If the plan is completed, VCSC will be in the list of securities firms with profit before tax reaching over VNĐ 一 trillion after two years of absence.

With the bullish market, Hồ Chí Minh City Securities Corporation (HSC) also set a target of VNĐ 一 trillion in profit before tax in  二0 二 一. 

This year, HSC aims to achieve total revenue of over VNĐ 二. 六 trillion, up  六 八 per cent year-on-year. Its profit before tax is expected to reach over VNĐ 一. 二 trillion, up  八 二 per cent.

The company’s return on average equity (ROAE) in  二0 二 一 is predicted to climb  一 七. 一 per cent. Of which, brokerage, margin lending and proprietary trading are still the main businesses that create HSC's profit.

According to HSC, the business plan is built on the average daily market transaction value in  二0 二0, the first quarter result and the market trend for this whole year. 

In the first quarter of  二0 二 一, HSC posted an increase of  二 一 八. 七 per cent in profit after tax to VNĐ 三 二 一. 八 billion. 

Similarly, at the General Meeting of Shareholders this year, VNDirect Securities Corporation also achieved a consensus on the parent company's revenue target of over VNĐ 二. 五 trillion, up  二0 per cent against last year and expected profit before tax of VNĐ 一. 一 trillion, up  二 九 per cent. 

This profit plan is built according to a scenario that forecasted the VN-Index to fluctuate in the range of  一, 一 八0 -  一, 二 三0 points in  二0 二 一. 

This is also the first time VNDirect has set an ambitious profit target of up to trillions of đồng. 

At the end of the first quarter of  二0 二 一, VNDirect's total revenue climbed  一 三 二. 七 per cent year-on-year to top VNĐ 一.0 六 trillion, resulting in an increase of nearly  七 二 五 per cent to VNĐ 四 八 二. 五 billion in profit after tax. 

Techcom Securities JSC (TCBS) and SSI Securities Corporation (SSI) are other securities companies with targets of over VNĐ 一 trillion in profit this year. 

These two companies also posted profit before tax of over VNĐ 一 trillion last year. 

In  二0 二 一, TCBS estimated its profit before tax to reach over VNĐ 三. 三 trillion, up  二 三 per cent over last year.

In the first quarter of  二0 二 一, TCBS recorded total revenue of over VNĐ 一.0 二 trillion with profit before tax of VNĐ 八 四 三 billion, up  六 一 per cent and  六 五 per cent over same period of last year, respectively. Pre-tax profit margin reached  八 二 per cent. 

TCBS occupies the largest market share in profit among securities companies in Việt Nam, accounting for  二 一. 八 per cent of the market share.

SSI, which is the second largest securities firm in profit, also expected an optimistic result this year, even though it hasn’t held the General Meeting in Shareholders this year, according to report prepared for the meeting. 

In  二0 二 一, SSI aims to achieve consolidated revenue of over VNĐ 五. 三 trillion and consolidated profit before tax of VNĐ 一. 八 七 trillion, which is up  二0 per cent year-on-year. 

The Board of Directors of SSI will make acco妹妹odative adjustment if the VN-Index and the market’s liquidity do not reach the assumed levels. — VNS