The securities company targets consolidated revenue of VND 8,112 billion and pre-tax profit of VND 3,398 billion. Compared to 2023 results, these indicators increased by 13% and 19% respectively and are record highs.
On the afternoon of April 25, SSI Securities Joint Stock Company (Code: SSI) held the 2024 Annual General Meeting of Shareholders. Reported at the meeting, SSI had a total of more than 74,000 shareholders and the number of attendees. As of 2:00 p.m., there were nearly 800 shareholders, representing more than 53% of the shares with voting rights.
At the congress, SSI Chairman of the Board of Directors Nguyen Duy Hung said that according to the provisions of the Enterprise Law effective from 2021, the general director and chairman of the Board of Directors are not related persons. However, currently Chairman of the Board of Directors Nguyen Duy Hung and CEO Nguyen Hong Nam (appointed CEO since 2020) are siblings.
“The company has prepared forces and successors to have someone to be the general director in the future so as not to violate new regulations,” Mr. Hung said about the personnel structure when Mr. Nam’s term will end. ends in 2025.
SSI’s 2024 Annual General Meeting of Shareholders. Image: HL.
DISCUSSION SESSION
Shareholders: How does the company’s proprietary trading segment work?
Director of Proprietary Trading, Capital Business Nguyen Vu Thuy Huong: The number of self-trading and capital accounts for about 60% of SSI’s profits. Self-trading includes 3 segments: capital trading, stock trading and derivatives trading. Capital trading accounts for the largest 45% of SSI’s profits and stock trading accounts for about 15%.
In 2023, stock trading has a profit margin of about 20%, higher than the increase in VN-Index.
Shareholders: Where does profit growth come from?
Director of Proprietary Trading, Capital Business Nguyen Vu Thuy Huong: Based on the 2024 business plan, there are 4 main business blocks: retail, capital investment, investment banking services and wholesale. With a profit growth plan of 19%, the company plans for all segments to increase equivalent to the growth rate of the entire company.
Shareholders: Does SSI have a marker maker (buy and sell the same shares)?
Chairman of the Board of Directors Nguyen Duy Hung: Currently the company does not have this activity. However, SSI has a derivative array that is a form of this.
Deputy General Director Nguyen Duc Thong: Warrants issued by SSI have a market maker to facilitate investors’ transactions, safely and smoothly.
Shareholder: What is the upgrade roadmap?
Chairman of the Board of Directors Nguyen Duy Hung: Upgrading is a matter of the market, and SSI prepares the necessary conditions to take advantage of opportunities and support factors for market upgrade.
Shareholders: How is the margin at the company?
Director of Retail Division Vu Ngoc Anh: Regarding margin lending, this is a concern of many investors. This has two benefits: the securities company has more revenue and investors have more leverage to invest. The company will continue to promote this segment.
The year-end outstanding debt plan is up to 20,000 billion VND, up from about 17,000 billion VND currently.
Along with developing margin balance, we also provide safe risk management services for customers.
SSI Chairman answers questions from shareholders at the 2024 annual general meeting. Photo: SSI.
Shareholders: Zero fee strategy and margin lending?
Chairman of the Board of Directors Nguyen Duy Hung: Service provision depends on customer needs so the company can adjust appropriate steps to ensure company benefits and customer operations. Depending on the customer’s needs, appropriate steps will be taken to satisfy all parties.
Shareholders: How real is the company’s stock issuance?
Chairman of the Board of Directors Nguyen Duy Hung: The company announced its implementation last year, but approval took time and the release was not completed.
Shareholder: Has the company connected KRX yet?
Deputy General Director Nguyen Duc Thong: Regarding the tests with VSD, the company has passed the tests without any problems, the April 30 test is the last test. The company is quite confident in connecting with KRX.
Initially, the company planned not to have many changes, but now looking back, KRX will create business opportunities in new products and fields. This is a system that can change the face of the Vietnamese stock market.
Shareholders: What is the company’s interest expense?
Chairman of the Board of Directors Nguyen Duy Hung: SSI can mobilize cheap capital, while specific lending depends on market conditions. Personally, I think SSI’s lending interest rates are lower than the market, are efficient and balance resources.
Shareholder: Strategy for personal asset management?
General Director of SSIAM Nguyen Ngoc Anh: The fund management segment has 90,000 individual and institutional customers. The company has just opened an investment trust segment for high-end customers, hoping that in the next 2-3 years this will be an important activity in fund management.
Director of Retail Division Vu Ngoc Anh: In recent years, topics related to asset management have also been of great interest. Vietnam has two new trends: the new generation of rich people and the transfer of assets from parents to children, so the need for asset management will be huge.
In Vietnam, most financial companies are also interested in this field. The company determined that this is a definite need. The company has completed phase 1 of its asset management development strategy and will launch its first investment consulting products.
Shareholders: Why is profit growth faster?
Chairman of the Board of Directors Nguyen Duy Hung: This is not like producing goods, sometimes revenue increases by 1% but profits can increase by more than 1% which is normal.
Shareholder: After the VNDirect incident, how does SSI enhance security?
Chairman of the Board of Directors Nguyen Duy Hung: This is a bad incident for the stock market in general. It was not after the VNDirect incident that the company became interested, but before that, SSI was concerned. Even the employees felt why SSI cared too much about this issue.
Deputy General Director Nguyen Duc Thong: Investing in system security is always a top concern. The way to ensure that bad people entering the system can be detected immediately and eliminated as soon as possible. So we are very interested and have many scenarios to handle.
We always update new attack methods to review the system and adapt. Another very important step is to back up and restore data.
Shareholders: Does the company issue individual shares to strategic shareholders?
Chairman of the Board of Directors Nguyen Duy Hung: The issuing partner must see what contribution to the company. It is important to have the right person, the right value, and valuable cooperation rather than just issuing to increase capital. The company is still pursuing and will seek shareholders’ opinions when available.
Shareholder: Market share is decreasing, what is the company’s strategy?
Chairman of the Board of Directors Nguyen Duy Hung: This is not only SSI but also many large companies are decreasing, especially VPS is increasing. SSI offers many solutions, but recovering market share is not a story that happens in a day or two. The company considers market share as something to strive for, not the only thing. The company has many other goals to strive for, and cannot ignore the factor of sustainable development.
Shareholders: How prepared are you for prefunding?
Chairman of the Board of Directors Nguyen Duy Hung: SSI is the first unit to come up with the idea of prefunding and is ready to implement it, ensuring confidence in implementation.
Shareholders: Is the company’s forecast to reach 1,300 points low?
Chairman of the Board of Directors Nguyen Duy Hung: SSI does not forecast that the VN-Index will reach 1,300 points, but this is only an assumption that it will fluctuate around 1,300 points. SSI has long not predicted what level the VN-Index will reach at the end of the year.
Shareholders: What is the biggest risk factor for the market?
Chairman of the Board of Directors Nguyen Duy Hung: The biggest risk is investor confidence. Fortunately, investors still maintain confidence in the stock market, and market liquidity has also improved.
Record profit plan of 3,400 billion VND
In 2024, the company set Consolidated revenue plan is 8,112 billion VND and pre-tax profit is 3,398 billion VND. Compared to 2023 results, these indicators increase by 13% and 19%, respectively.
If completed, this will be SSI’s highest revenue and profit ever. This profit figure is slightly better than the VND 3,365 billion achieved in 2021 when the stock market boomed and all business segments were favorable.
The Board of Directors also wants to be authorized by shareholders to adjust the plan appropriately when growth and market liquidity do not reach the assumed level.
Parent company SSI ended the first quarter with a pre-tax profit of 900 billion VND and a profit after tax of 727 billion VND, an increase of 53% and 51% respectively over the same period. This is the best result since the fourth quarter of 2021 until now.
According to SSI, consolidated revenue is estimated at 2,022 billion VND and pre-tax profit is 945 billion VND. These targets correspond to 25% and 28% of the 2024 plan.
Source: Synthetic HL.
Regarding the profit distribution plan for 2023, the Board of Directors proposed a cash dividend payment of 10%, equivalent to an estimated amount of VND 1,511 billion.
At the meeting, the Board of Directors will also submit approval to continue implementing approved stock offering and issuance plans in 2023, issue a maximum of 10 million ESOP shares in 2024, and elect 2 members of the board of directors. value and other content.
By the end of 2023, SSI has two plans to increase capital including issuing more than 302 million bonus shares at the rate of 20% and offering more than 151 million shares to existing shareholders at the rate of 10%. Total issuance volume is more than 453 million units, thereby increasing charter capital to 19,645 billion VND to continue to lead in capital among the group of securities companies.
The congress ended with all proposals approved.
