Massive increase in charter capital

Increasing capital is an urgent need for securities companies to meet capital needs, supplement capital for company operations, and at the same time prepare for the "big game" of upgrading the stock market.

Accordingly, a series of securities companies have announced plans to increase capital. The proceeds from the issuances of enterprises are expected to be used to invest in developing information technology systems, supplement capital for self-trading and underwriting activities, and supplement capital for margin lending.

Accordingly, the State Securities Commission (SSC) has just granted a certificate of registration for public offering of more than 109.4 million shares to MB Securities JSC (Code: MBS). The registration period for purchase is from August 21 to September 9, 2024.

In addition, MBS also plans to issue more than 28.7 million individual shares to a maximum of 30 professional securities investors. If both of these options are completed, MBS's charter capital is expected to increase to VND5,758 billion.

Similarly, VIX Securities JSC (Code: VIX) has just been approved to issue nearly 790 million additional shares. If the issuance is successful, VIX will increase its charter capital from VND6,694 billion to nearly VND14,600 billion - entering the top securities companies with the largest charter capital.

At this year's General Meeting of Shareholders, Saigon - Hanoi Securities Joint Stock Company (Code: SHS) also approved the decision to issue a total of nearly 894.5 million shares to increase its charter capital from VND 8,131.6 billion to VND 17,076.3 billion. The expected implementation time is in 2024-2025 and/or after reporting/receiving approval from relevant State agencies.

SSI Securities Corporation (Code: SSI) also plans to issue 453.3 million new shares, thereby increasing its charter capital from VND 15,111 billion to nearly VND 19,645 billion, ranking first in terms of capital scale among securities companies.

Most companies reported positive profits.

Regarding business activities of enterprises, at MBS Securities, revenue in the second quarter of 2024 reached VND 883 billion, an increase of 120% over the same period last year. Profit after tax reached nearly VND 217 billion, an increase of 75% over the same period last year and a record high quarterly profit in the history of operations.

According to MBS's explanation, the positive business results of the second quarter were due to the sharp increase in the value and volume of securities transactions in the whole market compared to the same period last year, helping to support the brokerage and lending segments.

Accumulated in the first 6 months of the year, MBS's operating revenue reached VND 1,557 billion, up 111% over the same period in 2023; pre-tax profit was VND 500 billion, up 63% and completed nearly 54% of the yearly plan; after-tax profit was VND 399 billion, up 63% over the same period last year.

For VIX Securities, in the second quarter, VIX recorded a significant decline in business results compared to the same period last year. Accordingly, the company's operating revenue decreased by 45% to nearly VND380 billion, mainly due to a 52% plunge in proprietary trading results to VND222 billion. After deducting expenses, VIX Securities reported a profit after tax of nearly VND124 billion, a sharp decrease of 78% compared to the same period.

In the first six months of 2024, VIX's operating revenue decreased by 23% to nearly VND 740 billion, while after-tax profit also halved to VND 286 billion, completing only 27% of the plan set for the whole year.

At SHS, in the second quarter of 2024, SHS achieved more than VND 599 billion in operating revenue, up 94% over the same period. The proprietary trading segment "won big" with profits from financial investments recorded through profit/loss (FVTPL) at VND 376 billion, 3.2 times higher than the same period. In the brokerage segment, SHS also recorded a 15% growth in the second quarter with VND 67 billion in revenue. As a result, SHS reported a profit in the second quarter of more than VND 354 billion, more than 2.5 times higher than the same period.

Accumulated profit before tax in the first 6 months of the year was nearly 879 billion VND, nearly 4 times higher than the same period last year and achieved 85% of the yearly plan. Profit after tax was 710.5 billion VND, 3.4 times higher than the same period last year.

For the "big guy" SSI, according to the consolidated financial report for the second quarter of 2024, SSI achieved VND 2,307 billion in operating revenue, up 37% over the same period. Profit after tax reached VND 848.5 billion, up 51% over the second quarter of 2023. Accumulated in the first half of 2024, operating revenue increased by 35% to VND 4,280 billion. Profit after tax increased by 51% and reached VND 1,613 billion.

As of June 30, 2024, SSI's margin lending balance reached VND 19,600 billion, up 16% over the previous quarter and up 33.5% over the end of 2023. The company's total assets reached VND 71,108 billion, up 2.7% over the end of last year.