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Thien Viet Securities exceeding business plan

Thien Viet Securities (TVS) is "the rare thing" among listed securities, after 9 months it has exceeded the 2015 business plan, thanks to core business segments, especially Banking Investment (IB), which has reached a new level of growth alongside brighter prospects for Investment, Fund Management and Brokerage segments.

Exceeding profit plan after 9 months

In an economy landscape which the stock market faced major difficulties from the beginning of the year, causing many securities firms to continue suffering from losses and capital loss, resulting in cases of dissolution and mergers, TVS not only maintained business performance of continuous profit since its establishment in 2006, but also impressed by considerably exceeding 2015 business plan after 9 months, less than a year after its listing on the HCMC Stock Exchange (HOSE).

"In the first 9 months of 2015, TVS reported a VND79 billion profit-after-tax, exceeding 18% compared with the VND66.7-billion plan for this year...", said Mrs. Nguyen Thanh Thao, General Director of TVS, adding that these results do not include unrealized profits from TVS’ portfolio of listed stocks. If the stock market continues to perform as recently, most likely this would be the highest-profit year of TVS after 9 years of operation (2014 after-tax-profit reached VND79 billion).

The results that TVS achieved during these years have shown the effectiveness of the business strategy balancing between short-term and long-term benefits, for the ultimate purpose of creating the highest value for shareholders. This strategy has enabled TVS to maintain impressive annual dividend yield among securities firms (16% dividend yield for 2013, 18% for 2014) and the Company is planning for a 2015 dividend advance for shareholders in Q42015.

"Decoding" the profit rally

The profit rally that TVS achieved after 9 months is based on 3 pillars: continuous in-depth development, profit maximization of the business segments which has long been its predominant features such as Investment Banking (IB) and Investment (PI); promoting efficiently the segments with tremendous potential, such as: Investment Fund Management, Brokerage; modern technological trading system, in sync with the efficient risk management system set up according to international standards.

For the first pillar, after 9 years of operation, the IB segment has advised domestic businesses and individuals and successfully raised nearly USD630 million, including large capital arrangement deals. The continued in-depth development of the IB segment allows TVS to diversify its revenue sources consistently, even in the face of a sagging stock market with weak liquidity.

In the Investment segment, TVS is still pursuing the investment strategy in the enterprises which have strong core business and efficient governance. Due to the short-term and continuous volatility on the stock market this year, the Net Asset Value (NAV) of several funds was outgrown by VN-Index (8% or even negative), however TVS still aims at maintaining investment performance above 15% for the entire 2015.

After IB and PI had grown up, TVS is being able to invest in the other growing departments such as Investment Fund and Brokerage. As for the Fund Management segment, though newly operated in less than 5 months, Thien Viet Asset Management JSC (TVAM), a subsidiary of TVS, is currently managing a portfolio of roughly VND500 billion. In addition to further promoting unit investment trust by clients, TVAM is focused on planning a funding for the establishment of a closed-end fund listed on HOSE, with the goal of reaching VND300 billion in size in Q12016.

Brokerage department is being developed with a team of professional consultants, increasingly strengthened financial power, and a modern trading system implemented  by AFE of Hong Kong which will come into operation from November. TVS forecasts the Brokerage segment will increase its contribution to overall profits in the next 2 years.

While these two pillars focus on increasing sales for TVS, the third pillar, Risk Management, is responsible for preserving profits, minimizing operation risks, allowing TVS to expand new capacity for growth in a sustainable way, making a difference in providing products, services and investing methods to increase its competitive edges on the market. These pillars will substantially contribute to higher values for the Company and its shareholders.

Since the beginning of this year, TVS has been focused on increasing charter capital. After the successful capital raising to more than VND476.4 billion through a 12% dividend payment in shares, TVS is implementing a plan to sell treasury shares, expecting to gain VND60 billion. Should this transaction be finalized, TVS will consider increasing its charter capital to VND1.000 billion. The capital raising  not only will increase budget for investment, but it can also pave the way for TVS in creating new products and services, in order to meet the requirements of State Securities Commission should SSC allow intra-day trading, derivative securities...

Nguồn: Tin Nhanh Chứng Khoán