EARNINGS RELEASE

VIETCAP ACHIEVES PROFIT BEFORE TAX OF VND836BN IN 9M 2024

Vietcap Securities (HOSE: VCI, “Vietcap,” or “the company”) announces its business results for the third quarter of 2024 (Q3 2024) and the first-nine-month of 2024 (9M 2024).

 

Q3 2024 and 9M 2024 financial summary

Profit before tax (PBT): For Q3 2024, PBT was VND265bn (USD10.6mn), growing 26% from Q3 2023. For 9M 2024, PBT was VND836bn (USD33.4mn), increasing 98% compared to 9M 2023 and fulfilling 119% of Vietcap’s 2024 guidance of VND700bn (USD27.5mn).

Return on equity (ROE): Trailing-twelve-month (TTM) ROE was 10.2% for Q3 2024 (13.5% net of differences in equity due to asset revaluation). 

Total equity: VND8,642bn (USD345.7mn) as of end-September 2024 — 17% higher than at end-December 2023.


Q3 2024 and 9M 2024 business segment highlights

Brokerage

  • Brokerage recorded Q3 2024 revenue of VND186bn (USD7.5mn; 14% higher compared to Q3 2023) and PBT of VND69bn (USD2.7mn; 19% higher compared to Q3 2023). Both revenue and earnings of the brokerage segment declined compared to last quarter, mainly due to a decrease in overall market liquidity as average daily trading volume fell 25% to USD745mn in Q3 2024 compared to USD995mn in Q2 2024. For 9M 2024, brokerage recorded revenue of VND567bn (USD22.7mn; growing 53% compared to 9M 2023) and PBT of VND211bn (USD8.4mn; growing 133% compared to 9M 2023). Vietcap ranks fourth on HOSE with a brokerage market share of 6.78%, increasing significantly from the sixth place ranking of 5.32% market share in Q2 2024. 

Margin Lending

  • Margin lending achieved revenue of VND215bn in Q3 2024 (USD8.6mn; 12% lower compared to last quarter but 6% higher compared to Q3 2023) and PBT of VND46bn (USD1.8mn; 28% lower compared to last quarter but flat compared to Q3 2023). For 9M 2024, margin lending recorded revenue of VND648bn (USD25.9mn; 10% higher compared to 9M 2023) and PBT of VND151bn (USD6.1mn; 39% higher compared to 9M 2023). 
  • Vietcap’s margin lending balance reached a record-high level of VND10,112bn (USD404.5mn) as of end-September 2024 (27% higher compared to end-December 2023). Vietcap’s margin lending balance to total equity ratio remains at a healthy level of 1.17x.

Investment Banking

  • Investment banking revenue was VND2bn in Q3 2024 (USD0.1mn; compared to VND12bn in Q2 2024) and net loss was VND6bn/USD0.3mn (compared to PBT of VND2bn/USD0.1mn in Q2 2024). For 9M 2024, investment banking recorded revenue of VND18bn (USD0.7mn; growing 8% compared to 9M 2023) and a net loss of VND10bn (USD0.4mn; compared to a net loss of VND23bn/USD0.9mn in 9M 2023). Vietcap’s Investment Banking Department is currently conducting notable advisory deals. 

Investment 

  • Investment recorded Q3 2024 revenue of VND575bn (USD23.0mn; 19% higher than in Q2 2024) and PBT of VND157bn (USD6.3m; 22% lower than Q2 2024 but 29% higher than Q3 2023). For 9M 2024, investment recorded revenue of VND1,493bn (USD59.7mn; growing 110% compared to 9M 2023) and PBT of VND485bn (USD19.4mn; growing 97% compared to 9M 2023). In 9M 2024, Vietcap made several trades in FPT, MBB, HPG, VNM, MWG, and MCH, among other stocks.

 

9M 2024 financial position highlights

  • Vietcap’s debts were VND10,833bn (USD433.3mn) as of end-September 2024, increasing 21% compared to end-December 2023. These debts were all short-term and mainly used to fund margin lending activities.
  • Vietcap’s total debt to equity ratio increased to 125.3% at end-September 2024 compared to 121.8% at end-December 2023. 
  • Vietcap’s total assets were VND20,415bn (USD816.6mn) at end-September 2024 — 18% higher compared to end-December 2023.

Notable corporate actions in 9M 2024 


  • In January 2024, Vietcap signed syndicated loan financing for USD34mn, incorporating a greenshoe option up to USD100mn. The loan was arranged by Bank SinoPac and the Bank of Kaohsiung – Offshore Banking branch. 
  • In June 2024, Vietcap issued 4.4 million ESOP shares (equivalent to 1.0% of total outstanding shares prior to the ESOP issuance). Vietcap’s total outstanding shares as of end-June 2024 were 441.9 million shares.
  • In September 2024, Vietcap signed syndicated loan financing for USD119mn (equivalent to VND2,975bn) incorporating an option of accordion for an increase by up to USD81mn (equivalent to VND2,025bn). The loan was arranged by the following banks: Maybank Securities Pte. Ltd., Malayan Banking Berhad (Singapore Branch), Maybank Philippines, Inc., Maybank International (Labuan Branch), and Taishin International Bank Co., Ltd. (Singapore Branch).
  • In September 2024, Vietcap completed a 10:3 bonus share scheme (equivalent to 132.6 million new shares issued). Vietcap’s total outstanding shares as of end-September 2024 were 574.5 million shares.
  • In September 2024, Vietcap approved the implementation of a private placement plan for 143.6 million new shares (equivalent to 25% of outstanding shares) with an issuance price of VND28,000/share. 

Income Statement Highlights


VND bn

Q1

2023

Q2

2023

Q3 2023

Q4 2023

Q1

2024

Q2

2024

Q3

2024

QoQ

YoY

9M

2023

9M

2024

YoY

2022

2023

Total revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage

90

116

164

143

186

194

186

-4%

14%

371

567

53%

609

514

Margin Lending

193

195

203

200

190

244

215

-12%

6%

591

648

10%

808

791

Investment Banking

15

0

1

19

4

12

2

-87%

18%

17

18

8%

431

35

Investment

205

191

314

446

433

484

575

19%

83%

710

1493

110%

1344

1156

Operating expenses

235

141

268

419

370

359

468

30%

74%

644

1198

86%

1399

1064

Loss on FVTPL (1)

96

36

127

238

168

198

253

27%

99%

258

619

139%

900

496

Provisions (2)

0

0

0

0

0

0

0

N.M.

N.M.

0

0

N.M.

0

0

Other operating expenses 

(Net of (1) and (2)) 

139

105

141

182

202

161

215

34%

52%

386

579

50%

498

567

Financial expenses

161

211

178

191

185

197

197

0%

11%

549

580

6%

700

740

Profit before tax

81

131

210

149

228

344

265

-23%

26%

422

836

98%

1060

571

Brokerage

-2

35

57

12

65

77

69

-11%

19%

90

211

133%

192

102

Margin lending

37

26

46

44

42

63

46

-28%

0%

109

151

39%

229

153

Investment banking

1

-10

-14

-9

-6

2

-6

N.M.

N.M.

-23

-10

N.M.

342

-32

Investment

44

80

121

101

126

202

157

-22%

29%

246

485

97%

298

347

Net profit after tax

73

117

180

123

198

279

215

-23%

20%

370

692

87%

869

493


Balance Sheet Highlights


VND bn

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY2023

Q3 2024

Balance sheet highlights

 

 

 

 

 

 

 

Cash and cash equivalents

1,144

795

643

1,132

3,424

788

2,544

FVTPL

425

795

615

1,222

665

122

476

Held-to-maturity (HTM)

0

262

106

754

886

380

310

Margin lending

2,792

3,032

3,882

7,701

5,279

7,992

10,112

Available-for-sale (AFS)

2,039

1,731

2,713

5,324

3,734

6,604

6,513

Debt

2,320

2,563

3,364

8,327

6,873

8,979

10,833

Short-term debts

2,320

2,563

3,364

8,327

6,873

8,979

10,833

Long-term debts

0

0

0

0

0

0

0

Total Assets

6,510

7,243

8,382

16,636

14,243

17,255

20,415

Total Liabilities

2,867

3,191

3,861

10,094

7,747

9,884

11,773

Total Equity

3,643

4,052

4,522

6,542

6,495

7,371

8,642

Key financial ratios

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY2023

Q3 2024

Total Debts / Equity

63.7%

63.2%

74.4%

127.3%

105.8%

121.8%

125.3%

Net Debts (*) / Equity

32.3%

43.6%

60.2%

110.0%

53.1%

111.1%

95.9%

Total Liabilities / Total Assets

44.0%

44.1%

46.1%

60.7%

54.4%

57.3%

57.7%

ROA 

12.7%

10.1%

9.8%

12.0%

5.6%

3.1%

4.3%

ROE 

24.7%

18.0%

17.9%

27.1%

13.3%

7.1%

10.2%

ROE (**)

28.5%

19.9%

19.7%

33.4%

16.8%

8.8%

13.5%

BVPS (VND)

8,596

9,446

10,502

15,112

             14,915 

             16,849 

        15,044 

(*) Net debt = Total debts – CCE (cash & cash equivalents)

(**) This ROE ratio is calculated based on total equity net of differences due to asset revaluation.

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