Securities companies set different targets for 2023

Although 2023 is forecast to be a difficult year, many securities companies still set a target of positive profit growth in 2023, besides some others adopting more prudent plans.

Securities companies set different targets for 2023 hinh anh 1

A customer visits the office of Viet Capital Securities Joint Stock Company (VCI). The company plans to earn revenue of 3.24 trillion VND in 2023, and pre-tax profit of 1 trillion VND. (Photo VCI)

Although 2023 is forecast to be a difficult year, many securities companies still set a target of positive profit growth in 2023, besides some others adopting more prudent plans.

Viet Capital Securities Joint Stock Company (VCI) plans to earn revenue of 3.24 trillion VND in 2023, and pre-tax profit of 1 trillion VND. Compared to the performance of the previous year, the revenue target decreased by 12% while the profit target decreased by 6%.

VCI said that the plan was built on the forecast that the VN-Index will fluctuate around 1,100 points by the end of 2023.

This company also pointed out certain risks that may affect the Vietnamese stock market such as slower global growth leading to greater disruptions to production, trade and FDI; higher-than-expected inflation causing interest rates to stay higher for a longer period of time; financial problems of real estate developers affecting banks and the economy; fiscal policy tighter than expected and other risks such as the further escalation of the Russia-Ukraine conflict.

VCI forecast that the securities brokerage sector will see difficulties in 2023 with fierce competition among companies. The strategy of the companies will be to lend high margins, apply the policy of exempting or reducing transaction fees, and improve the brokerage team.

Vietnam Construction Securities Joint Stock Company (CSI) forecast that the COVID-19 pandemic being under control in neighbouring countries will stimulate foreign capital inflows - which is a niche market of CSI. The company will still mainly focus on promoting main business lines such as brokerage and margin lending. At the same time, it will maintain and develop the investment consulting segment; as well as exploit and develop the asset management segment.

It plans revenue down by 39% to 23.5 billion VND and pre-tax profit down by 5% to reach 12 billion VND.

FPT Securities Joint Stock Company (FTS) has set a target of total revenue of 770 billion VND in 2023, down 27% compared to 2022. Pre-tax profit decreased by 34% to 420 billion VND.

According to FPTS' board of directors, the stock market in 2023 is less attractive with reduced liquidity compared to 2022 plus businesses are facing many difficulties and challenges. There will be no new products and only a few new stocks listed and registered for trading. In addition, competition on transaction fees between securities companies is becoming more intense.

Looking back at the previous year, among the three securities companies mentioned above, only CSI maintained positive growth in revenue and profit after tax, reaching 38 billion VND, up 17% year-on-year and 13 billion VND, up 34%, respectively.

VCI recorded a pre-tax profit of nearly 1.06 trillion VND, down 43% compared to the previous year. With the results achieved, this company fulfilled nearly 56% of the profit plan for the whole year.

Profit before tax of FPTS also decreased by 12% to 638 billion VND and only reached nearly 94% of the profit before tax plan. The Board of Management said that the reason was due to unfavourable market movements in the second half of 2022, plummeting market liquidity, causing brokerage revenue to decrease accordingly.

Optimistic plans

Despite a difficult forecast for 2023, MB Securities Joint Stock Company (MBS) sets a revenue target of 2.7 trillion VND, up 37% compared to 2022, profit before tax at 900 billion VND, up 36% year-on-year. In addition, MBS aims to enter the top 5 brokerage market share list this year.

As for the previous year's business results, revenue reached 1.98 trillion VND and pre-tax profit touched 661 billion VND, down 12% and 10%, respectively, compared to results in 2021.

Vietnam Industrial and Commercial Securities Joint Stock Company (VIG) sets ambitious targets for 2023 with operating revenue of nearly 119 billion VND and pre-tax profit of more than 50 billion VND, up 65% and up 19 times over 2022, respectively.

Phu Hung Securities Joint Stock Company (PHS) also announced a business plan with total revenue of 788 billion VND and profit after tax of about 116 billion VND, nearly twice the estimated result in 2022.

In 2022, the Vietnamese stock market witnessed a decrease of nearly 33% of the VN-Index, accompanied by a deep drop in market liquidity. In the first two months of 2023, domestic investors opened less than 100,000 new accounts in total.

The high interest rate level plus the global economic recession is forecast to continue to have a negative impact on the activities of businesses in the future. After the fourth quarter reporting season, the profits of listed companies dropped sharply, making the market valuation (P/E) no longer really attractive and becoming a barrier to attracting capital in the short term.

However, according to Lumen Vietnam Fund, by the second half of 2023, interest rates are expected to be properly managed, business activities begin to prosper, helping the profit after tax of companies to grow by 10-15% over the same period last year. Besides, the more stable corporate bond market will create a good basis for a new up cycle of the stock market./.

en.vietnamplus.vn

Related News

Export growth supports the economy and stock market

Export growth supports the economy and stock market

VCN - Vietnam's export growth is on the recovery path, thereby becoming a positive signal for the economy as well as the stock market in 2024.
Securities attractive investment channel

Securities attractive investment channel

VCN - According to experts, with recent developments in the stock market, it can be seen that securities are currently an attractive investment channel.
Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

VCN - Deputy Minister of Finance Nguyen Duc Chi raised five tasks that need to be focused in 2024 so that the securities industry continues to develop in the face of intertwined opportunities and challenges.
Prevent risks from securities companies mobilizing capital from investors

Prevent risks from securities companies mobilizing capital from investors

VCN - The State Securities Commission (SSC) issued an official dispatch requesting securities companies to immediately stop signing new agreements and to settle all transactions related to investment cooperation activities, no later than June 30, 2024. Securities companies must report the settlement implementation roadmap to the SSC before December 30, 2024, and monthly report the results of implementation until full settlement. Mr. Do Bao Ngoc, Deputy General Director of Vietnam Construction Securities Joint Stock Company (CSI), discussed with Customs Magazine about this issue.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version