EARNINGS RELEASE

VIETCAP ACHIEVED PROFIT BEFORE TAX OF VND1,089BN IN 2024

Vietcap Securities (HOSE: VCI, “Vietcap,” or “the company”) announces its business results for the fourth quarter of 2024 (Q4 2024) and the year 2024 (full-year 2024).


Q4 2024 and full-year 2024 financial summary

Profit before tax (PBT): For Q4 2024, PBT was VND253bn (USD9.9mn), growing 70% vs Q4 2023. For full-year 2024, PBT was VND1,089bn (USD42.7   mn), growing 91% vs full-year 2023 and fulfilling 156% of Vietcap’s 2024 guidance of VND700bn (USD27.5mn).

Return on equity (ROE): ROE was 9.0% for full-year 2024. Excluding the net of differences in equity due to asset revaluation (amounting to VND2,372bn/USD93.1mn as of end-December 2024) and new equity from the November 2024 private placement (amounting to VND4,022bn/157.8mn as of end-December 2024), Vietcap’s ROE stood at 14.8%.

Total equity: VND12,944bn (USD508.0mn) as of end-December 2024 — 76% higher than at end-December 2023.


Q4 2024 and full-year 2024 business segment highlights

Brokerage

•    Vietcap’s brokerage market share on HOSE expanded to 7.03% and ranks in the fourth position compared to 6.78% in Q3 2024. For full-year 2024, Vietcap ranks fifth on HOSE with a brokerage market share of 6.08%, increasing significantly from the eighth ranking with a 4.47% market share in 2023. Vietcap maintained its leadership position as Vietnam’s top institutional broker and generated 30% foreign trading market share in 2024.

•    Brokerage recorded Q4 2024 revenue of VND202bn (USD7.9mn; 41% higher compared to Q4 2023) and PBT of VND86bn (USD3.4mn; 609% higher vs Q4 2023). Q4 2024 revenue and earnings of the brokerage segment also saw an increase of 8% and 26% vs last quarter, respectively.

•    Despite a decrease in market liquidity in Q4 2024 (Q4 2024 average trading value was 12% lower vs Q3 2024 and 12% lower vs Q4 2023), Vietcap’s strong performance in the brokerage segment was driven by increased market share in both retail and institutional brokerage, market-leading block trade activity, and a strong pipeline of secondary placement offerings during the quarter. In addition, 2023 was a high capex year overall for Vietcap, making 2023 a high-base year for brokerage expenses.

•    For full-year 2024, brokerage recorded revenue of VND769bn (USD30.2mn; growing 50% vs 2023) and PBT of VND297bn (USD11.6mn; growing 190% vs 2023). 

Margin Lending

•    Vietcap’s margin lending balance continued to set a record-high level at VND11,222bn (USD440.4mn) as of end-December 2024 (40% higher vs end-December 2023). Vietcap’s margin lending balance to total equity ratio remains at a healthy level of 0.9x as of end-December 2024. The strong performance of the margin lending segment was due to Vietcap’s brokerage market share increasing throughout 2024.

•    Margin lending achieved revenue of VND284bn in Q4 2024 (USD11.1mn; 32% and 42% higher vs Q3 2024 and Q4 2023, respectively) and PBT of VND85bn (USD3.3mn; 85% and 91% higher vs Q3 2024 and Q4 2023, respectively). For full-year 2024, margin lending recorded revenue of VND932bn (USD36.6mn; 18% higher vs 2023) and PBT of VND236bn (USD9.3mn; 54% higher vs 2023). 

Investment Banking

•    Investment banking revenue was VND17bn in Q4 2024 (USD0.7mn; 10% lower vs Q4 2023) with PBT of VND13bn (USD0.5mn) compared to a net loss of VND9bn (USD0.4mn) in Q4 2023. In Q4 2024, Vietcap successfully closed several deals, including but not limited to Vietcap being the exclusive sell-side advisor in the acquisition of a 49% stake in Hop Tri by Summit Agro International, and Vietcap acting as a tender offer agent for Sabeco increasing its ownership in Sabibeco from 22.7% to 65.9%.

•    For full-year 2024, investment banking recorded revenue of VND35bn (USD1.4mn; 2% lower vs 2023) and PBT of VND2bn (USD0.1mn; compared to a net loss of VND32bn/USD1.3mn in 2023). 

Investment

•    Investment recorded Q4 2024 revenue of VND521bn (USD20.4mn; 17% higher than in Q4 2023) and PBT of VND70bn (USD2.7m; 31% lower than Q4 2023). For full-year 2024, investment recorded revenue of VND2,014bn (USD79.0mn; growing 74% higher than 2023) and PBT of VND554bn (USD21.7mn; 60% higher than 2023). In Q4 2024, Vietcap made several trades in ACB, MBB, CTG, DGC, IDC, FRT, MWG, FPT, and MCH, among other stocks. 


2024 financial position highlights

•    Vietcap’s debts were VND12,574bn (USD493.5mn) as of end-December 2024, increasing 40% 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 decreased to 97.1% at end-December 2024 compared to 121.8% at end-December 2023. 

•    Vietcap’s total assets were VND26,592bn (USD1,043.6mn) at end-December 2024 — 54% higher compared to end-December 2023.


Notable corporate actions in 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 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 August 2024, Vietcap paid 2024 first interim cash dividends of VND400/share.

•    In September 2024, Vietcap signed syndicated loan financing for USD119mn incorporating an option of accordion for an increase by up to USD81mn. 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 November 2024, Vietcap successfully completed a private placement for 143.6 million new shares (equivalent to 25% of outstanding shares) with an issuance price of VND28,000/share. Vietcap’s total outstanding shares as of end-December 2024 were 718.1 million shares.

 

Income Statement Highlights

VND bn

Q1

2023

Q2

2023

Q3 2023

Q4 2023

Q1

2024

Q2

2024

Q3

2024

Q4

2024

QoQ

YoY

2022

2023

2024

YoY

Total revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage

90

116

164

143

186

194

186

202

8%

41%

609

514

769

50%

Margin Lending

193

195

203

200

190

244

215

284

32%

42%

808

791

932

18%

Investment Banking

15

0

1

19

4

12

2

17

949%

-10%

431

35

35

-2%

Investment

205

191

314

446

433

484

575

521

-9%

17%

1344

1156

2014

74%

Operating expenses

235

141

268

419

370

359

468

520

11%

24%

1399

1064

1717

61%

Loss on FVTPL (1)

96

36

127

238

168

198

253

373

47%

57%

900

496

992

100%

Provisions (2)

0

0

0

0

0

0

0

0

N.M.

N.M.

0

0

0

N.M.

Other operating expenses 

(Net of (1) and (2)) 

139

105

141

182

202

161

215

147

-32%

-19%

498

567

726

28%

Financial expenses

161

211

178

191

185

197

197

218

10%

14%

700

740

798

8%

Profit before tax

81

131

210

149

228

344

265

253

-4%

70%

1060

571

1089

91%

Brokerage

-2

35

57

12

65

77

69

86

26%

609%

192

102

297

190%

Margin lending

37

26

46

44

42

63

46

85

85%

91%

229

153

236

54%

Investment banking

1

-10

-14

-9

-6

2

-6

13

N.M.

N.M.

342

-32

2

N.M.

Investment

44

80

121

101

126

202

157

70

-56%

-31%

298

347

554

60%

Net profit after tax

73

117

180

123

198

279

215

218

1%

78%

869

493

911

85%


Balance Sheet Highlights

VND bn

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY2023

FY2024

Balance sheet highlights

 

 

 

 

 

 

 

Cash and cash equivalents

1,144

795

643

1,132

3,424

788

4,744

FVTPL

425

795

615

1,222

665

122

846

Held-to-maturity (HTM)

0

262

106

754

886

380

598

Margin lending

2,792

3,032

3,882

7,701

5,279

7,992

11,222

Available-for-sale (AFS)

2,039

1,731

2,713

5,324

3,734

6,604

8,409

Debt

2,320

2,563

3,364

8,327

6,873

8,979

12,574

Short-term debts

2,320

2,563

3,364

8,327

6,873

8,979

12,574

Long-term debts

0

0

0

0

0

0

0

Total Assets

6,510

7,243

8,382

16,636

14,243

17,255

26,592

Total Liabilities

2,867

3,191

3,861

10,094

7,747

9,884

13,648

Total Equity

3,643

4,052

4,522

6,542

6,495

7,371

12,944

Key financial ratios

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY2023

FY2024

Total Debts / Equity

63.7%

63.2%

74.4%

127.3%

105.8%

121.8%

97.1%

Net Debts (*) / Equity

32.3%

43.6%

60.2%

110.0%

53.1%

111.1%

60.5%

Total Liabilities / Total Assets

44.0%

44.1%

46.1%

60.7%

54.4%

57.3%

51.3%

ROA 

12.7%

10.1%

9.8%

12.0%

5.6%

3.1%

4.2%

ROE 

24.7%

18.0%

17.9%

27.1%

13.3%

7.1%

9.0%

ROE (**)

28.5%

19.9%

19.7%

33.4%

16.8%

8.8%

11.1%

BVPS (VND)

8,596

9,446

10,502

15,112

14,915

16,849

18,026

(*) 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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