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

As the market benchmark VN-Index broke the psychological level of 1,200 points, along with many positive outlooks about the market, securities firms set big growth targets for 2021.

 Of which, many companies expected their profits to reach trillions of dong.

Securities firms set high profit targets for 2021 on positive stock market
Trading hours at Ho Chi Minh City Securities Corporation (HSC). Photo nhipcaudautu.vn

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 VND1.25 trillion, up 31.4 per cent year-on-year.

In 2021, VCSC will restart large-scale M&A consulting deals, strengthening its position in investment banking (IB). 

VCSC’s existing contracts worth around VND40 trillion are in consumer finance, consumer goods and logistics. Revenue from these contracts is estimated to reach VND2.05 trillion, up 18.5 per cent over last year. 

The growth scenario is based on expectations that the VN-Index will hover around the 1,250 point-level this year. 

If the plan is completed, VCSC will be in the list of securities firms with profit before tax reaching over VND1 trillion after two years of absence.

With the bullish market, Ho Chi Minh City Securities Corporation (HSC) also set a target of VND1 trillion in profit before tax in 2021. 

This year, HSC aims to achieve total revenue of over VND2.6 trillion, up 68 per cent year-on-year. Its profit before tax is expected to reach over VND1.2 trillion, up 82 per cent.

The company’s return on average equity (ROAE) in 2021 is predicted to climb 17.1 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 2020, the first quarter result and the market trend for this whole year. 

In the first quarter of 2021, HSC posted an increase of 218.7 per cent in profit after tax to VND321.8 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 VND2.5 trillion, up 20 per cent against last year and expected profit before tax of VND1.1 trillion, up 29 per cent. 

 

This profit plan is built according to a scenario that forecasted the VN-Index to fluctuate in the range of 1,180 - 1,230 points in 2021. 

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

At the end of the first quarter of 2021, VNDirect's total revenue climbed 132.7 per cent year-on-year to top VND1.06 trillion, resulting in an increase of nearly 725 per cent to VND482.5 billion in profit after tax. 

Techcom Securities JSC (TCBS) and SSI Securities Corporation (SSI) are other securities companies with targets of over VND1 trillion in profit this year. 

These two companies also posted profit before tax of over VND1 trillion last year. 

In 2021, TCBS estimated its profit before tax to reach over VND3.3 trillion, up 23 per cent over last year.

In the first quarter of 2021, TCBS recorded total revenue of over VND1.02 trillion with profit before tax of VND843 billion, up 61 per cent and 65 per cent over same period of last year, respectively. Pre-tax profit margin reached 82 per cent. 

TCBS occupies the largest market share in profit among securities companies in Vietnam, accounting for 21.8 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 2021, SSI aims to achieve consolidated revenue of over VND5.3 trillion and consolidated profit before tax of VND1.87 trillion, which is up 20 per cent year-on-year. 

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

VNS

Pouring money into stocks: a new trend

Pouring money into stocks: a new trend

The VN-Index set an all-time high record recently, reaching over 1,230 points and daily liquidity totaling around $1 billion.

 
 

Other News

.
Debt burden risks budget stability
Debt burden risks budget stability
BUSINESSicon  29/05/2021 

Vietnam has had outstanding economic development in recent decades, even through the pandemic so far. 

Paint makers’ fresh coat of progress
Paint makers’ fresh coat of progress
BUSINESSicon  29/05/2021 

Having one of the fastest-growing paint and coating industries in the Southeast Asian region, Vietnam is mainly dominated by international paint and coating groups, but it is now witnessing a refresh as local makers attempt to gain some traction.

'Black-credit' lenders pose serious threat to borrowers
'Black-credit' lenders pose serious threat to borrowers
FEATUREicon  28/05/2021 

Experts have repeatedly rung the alarm bell over black credit, which is causing serious consequences to families and society.

PDP8 delay to unlock more cost-effective renewables
PDP8 delay to unlock more cost-effective renewables
BUSINESSicon  28/05/2021 

The past 12 months have been a period of intense activity for Vietnam’s power sector.

Inefficient State-invested projects must be removed from list: PM
Inefficient State-invested projects must be removed from list: PM
BUSINESSicon  27/05/2021 

The Cabinet leader recently issued a directive urging relevant agencies and localities to accelerate public investment disbursement and improve the quality of the mid-term public investment plan between 2021 and 2025.

Great investment opportunities in cold storage
Great investment opportunities in cold storage
BUSINESSicon  27/05/2021 

The rise of online shopping is driving demand for cold storage facilities, a segment that is severely short of supply around the world.

Vietnam to spend $124.5 billion on public investment over next five years
Vietnam to spend $124.5 billion on public investment over next five years
BUSINESSicon  27/05/2021 

Vietnam plans to outlay 2.87 quadrillion VND (124.5 billion USD) on public investment in the 2021-2025 period, up 120 trillion VND compared to the previous estimate.

Moody's affirms credit ratings for four Vietnamese banks
Moody's affirms credit ratings for four Vietnamese banks
BUSINESSicon  27/05/2021 

Credit rating agency Moody's on May 26 affirmed its long-term domestic and foreign currency deposit and issuer ratings of four Vietnamese banks.

Vietnam’s energy giant sets ambitious revenue of $1.2 billion
Vietnam’s energy giant sets ambitious revenue of $1.2 billion
BUSINESSicon  28/05/2021 

The PetroVietnam Power Corporation (PV Power) aims to earn VND28.4 trillion of revenue (US$1.2 billion) and pre-tax profit of nearly VND1.55 trillion this year.

Tax tweak puts strain on apparel makers
Tax tweak puts strain on apparel makers
BUSINESSicon  27/05/2021 

On-spot exports are now not subject to duty exemption, possibly derailing the recovery of textile and footwear companies.

Electricity prices still not falling despite oversupply
Electricity prices still not falling despite oversupply
FEATUREicon  27/05/2021 

The Electricity of Vietnam’s (EVN) latest report showed that the Covid-19 pandemic has led to a decrease in electricity demand. The real electricity output in 2020 was 247 billion kwh and the additional charge growth rate was 3 percent.

Goods face strict customs inspections as smugglers continue to violate laws
Goods face strict customs inspections as smugglers continue to violate laws
FEATUREicon  27/05/2021 

The General Department of Customs (GDC) said that risks in transit services continue to exist as smugglers try to carry prohibited goods into Vietnam.

Economist proposes measures to support enterprises in tough times
Economist proposes measures to support enterprises in tough times
FEATUREicon  28/05/2021 

Pham The Anh, chief economist at the Vietnam Institute for Economic Policy Research (VEPR), believes that social security support must be given to people who have had to shut down their business or have lost jobs because of lockdowns.

San Diu ethnic farmer grows the most expensive litchis in Vietnam
San Diu ethnic farmer grows the most expensive litchis in Vietnam
FEATUREicon  28/05/2021 

Tran Van Hanh, who lives in Chao hamlet, Luc Ngan district, Bac Giang province, one of the two largest litchi growing areas in Vietnam, owns an orchard that grows the most expensive litchis in the country.

Vietnam's post-pandemic economy
Vietnam's post-pandemic economy
FEATUREicon  27/05/2021 

As the Covid-19 pandemic persists, Vietnam's economy will still face many difficulties, but the country has the potential to increase productivity and develop at a higher rate than many other countries.

Oddest bank in Vietnam: No CEO, chairman takes office for two hours
Oddest bank in Vietnam: No CEO, chairman takes office for two hours
BUSINESSicon  27/05/2021 

The nearly decade-long war for power at the Vietnam Export Import Commercial Joint Stock Bank (Eximbank) may be coming to an end. 

VIETNAM BUSINESS NEWS MAY 28
VIETNAM BUSINESS NEWS MAY 28
BUSINESSicon  28/05/2021 

Food companies pressured by soaring raw material prices

Share prices rise, strong cash flow emerges
Share prices rise, strong cash flow emerges
FEATUREicon  26/05/2021 

Vietnam’s stock market made a spectacular breakthrough in the first months of the year with the VN Index staying at the 1,200 point threshold and some blue-chip prices strongly increasing.

Taxing unoccupied villas: one solution for creating fair housing market
Taxing unoccupied villas: one solution for creating fair housing market
FEATUREicon  26/05/2021 

A reasonable taxation policy is expected to help settle several problems, including excessive investment in high-end apartment and villa projects, and speculation buying.

Media tycoon has no way out after suffering losses
Media tycoon has no way out after suffering losses
BUSINESSicon  26/05/2021 

The VN-Index has been in the top of the world's strongest stock indexes since the beginning of the year with an increase of more than 16%. Over the past year, the index has increased by nearly 50% despite the Covid-19 pandemic.

 
 
 
Leave your comment on an article

OR QUICK LOGIN