AsemconnectVietnam - At the General Meeting of Shareholders of Rong Viet Securities (VDS), Mr. Nguyen Mien Tuan, Chairman of Rong Viet's Board of Directors, said that the estimated results were relatively close to the plan, with VND150 billion in revenue and VND77.5 billion in pre-tax profit, equal to about 28% of the whole year plan in 2023.

Efforts to bring stocks out of control in the first half of 2023
At the end of the first quarter of 2023, in the context that the economy and the stock market were still facing many difficulties, the average liquidity of the whole market reached VND11,337 billion/session, a decrease of 63.7% compared to the first quarter of 2022 (VND31,215 billion/session), affecting all business activities of Rong Viet. However, with the VN-Index recovering 5.71% compared to the beginning of the year, investment activities of Rong Viet had a positive recovery.
Profit before tax in the first quarter of 2023 was recorded at more than VND77 billion, completing 27.8% and following the progress of the business plan in 2023. Accordingly, as of March 31, 2023, profit after tax has not yet been completed. Rong Viet's distribution has returned to a positive value, clearing all accumulated losses.
Revenue structure including brokerage and margin lending accounted for a large proportion, about VND112 billion. Other segments are profitable, besides asset management (through a fund management company due to its modest size, a slight loss of several hundred million).
Mr. Tuan said that the first quarter results of Rong Viet were quite positive, showing that they have overcome difficulties and are profitable again, all accumulated losses. The company continued to make efforts to maintain effective business operations in the first 6 months of the year, to let the shares get out of control to get margin.
In 2022, Rong Viet achieved nearly VND861 billion in revenue, down 18.3% compared to 2021, operating expenses increased sharply by 95% to VND1,013.8 billion, making profit after tax negative VND115 billion. The sudden increase in expenses was mainly due to the provisioning to evaluate the decrease in the proprietary trading portfolio at the end of the period.
Excluding expenses for provisioning for proprietary trading, Rong Viet's business results in 2022 recorded a consolidated pre-tax profit of VND95.5 billion.
As of December 31, 2022, Rong Viet's total assets reached VND4,254 billion, a slight increase from VND4,033 billion at the beginning of the year. During the year, the Company successfully increased its charter capital, recording equity at the end of 2022 reaching VND2,082.9 billion, up 26.5% compared to VND1,645.9 billion at the beginning of the year.
The Company's financial position is maintained healthy with the financial adequacy ratio at the end of 2022 reaching 433.6%, much higher than the regulations of the Ministry of Finance of 180%.
According to the assessment of the Board of Directors, during the year, the Company made efforts to complete two important groups of goals: strengthening the foundation and expanding the scale, through the return of charter capital to VND2,100 billion; put into operation 3 branches Vung Tau, Dong Nai and Binh Duong; increased capital of Rong Viet Fund Management Company to VND60 billion and was licensed to establish Rong Viet Investment Fund with capital scale of VND50 billion.
In addition, Rong Viet has been and continues to invest, focusing resources on digital transformation projects to optimize the operating system, increase customer experience and put into operation new business models on digital platforms such as smartDragon, eduDragon, new website... Rong Viet's foundation continues to be firmly consolidated, creating a premise for new development steps.
Rong Viet's efforts have been recognized through many domestic and foreign awards such as "Best Trading Platform in Vietnam 2022" (Best Trading Platform) - Global Banking & Finance Review (GBFR) Award, "Where best work in Asia 2022” – HR Aisa Award, “Typical M&A consulting organization 2021 - 2022” at Vietnam M&A Forum 2022.
Profit before tax plan grew strongly, nearly VND271 billion
With the assumption that the VN-Index will fluctuate between 930 - 1,270 points with the average liquidity of the whole market from VND13,000 - VND15,000 billion/session, Rong Viet plans revenue and expenses to be VND890.1 and VND619.3 respectively, profit before tax of VND270.8 billion. Expected dividend 5%/par value.
In 2023, Rong Viet will continue to strengthen and enhance the quality of its human resources, strive to stabilize capital to ensure business activities, and improve risk management capacity. In addition, the Company will promote the care of existing customers and develop new customers, promote the business activities of the branches in order to more effectively exploit the advantages of operating network in economically developed area.
With the brokerage and margin lending business, Rong Viet will prioritize training and developing human resources, enhancing customer care, sharing information, combining with products and services, Rong Viet's new technology for effective advice, suitable for the risk appetite of each investor.
The proprietary investment segment is expected to have better results in 2023. Accordingly, Rong Viet still takes the view of value investment as the foundation, chooses safe stocks, and has good growth prospects for the future, anticipate recovery opportunities in 2023.
With investment banking activities, in the context of the corporate bond market facing many difficulties, Rong Viet will continue to promote compliance in business processes, as well as focus on promoting the progress of projects. M&A consulting – the field is determined to play a key revenue generating role for investment banking activities in 2023.
N.Nga
Source: VITIC/Tinnhanhchungkhoan