Outstanding Earnings Growth
In the first quarter of 2024, Rong Viet assesses that the Vietnamese economy is gradually regaining its growth momentum, along with a low-interest-rate environment, the Vietnamese stock market has been experiencing positive developments. In the first quarter of the year, the average liquidity of the entire market reached 23.9 thousand billion VND/session, 35.5% higher than the average in 2023, and the VN-Index closed at the end of the quarter, up 13.6% compared to the beginning of the year.
Seizing that opportunity, Rong Viet achieved quite positive and strong growth in its Q1/2024 business results compared to the same period last year. Rong Viet’s total revenue reached 283.7 billion VND, an 89% increase compared to Q1/2023. Most business segments experienced remarkable growth, in which investment activities brought in 119.5 billion VND in revenue, six times higher than the same period last year. Brokerage and securities services also grew well, contributing 53.5 billion VND (+56% yoy) and 91.8 billion VND (+19% yoy) to the total revenue in Q1/2024, respectively.
Total expenses in the first quarter of the year were 145.6 billion VND, double that of the same period last year. Accordingly, Rong Viet’s pre-tax profit reached 138.1 billion VND and after-tax profit was 110.5 billion VND, increasing by 78% and 98% respectively compared to Q1/2023. Thus, compared to the separate business plan for 2024, Rong Viet has completed 29% of the revenue plan and 39% of the profit target for the whole year.
As of March 31, 2024, Rong Viet’s total assets reached nearly 5,600 billion VND (+5.9%) and equity reached 2,524 billion VND, up 5.5% compared to the beginning of the year. Financial ratios are all maintained at safe, stable levels and in compliance with regulations such as the debt-to-equity ratio at 1.2 times (maximum regulation of 5 times), the outstanding margin lending balance-to- equity ratio at 1.12 times (maximum of 2 times) and the financial safety ratio at 525% (minimum of 180%).
ROEa and ROAa ratios (accumulated over the last 4 quarters) reached 16.4% and 8.0%, respectively, continuing to be in the group of securities companies with the highest operating efficiency. Earnings per share (EPS) in Q1/2024 reached 526 VND/share.
At the end of the first quarter, VDS share price closed at 22,650 VND/share, up more than 32% compared to the beginning of the year, bringing Rong Viet’s market capitalization to over 4,750 billion VND.
Plan to increase charter capital to 3,240 billion VND
According to the plan approved by the General Meeting of Shareholders, Rong Viet plans to have 2 share issuances to increase charter capital from 2,100 billion VND to 3,240 billion VND in 2024.
In the first phase, Rong Viet will issue dividend shares at a rate of 11.5% of face value and issue 8.85 million ESOP shares at a price of 10,000 VND/share. Currently, the procedures are being implemented and the Company aims to complete them in Q2/2024.
In the second phase, Rong Viet plans to offer 81 million shares to strategic investors and professional securities investors. The private placement of shares will help the Company be more proactive and flexible in utilizing financial resources, reduce the pressure on capital mobilization from other sources, increase its competitive position in the market, and better seize investment opportunities.
Also in the first quarter of 2024, Rong Viet continued to affirm its reputation as well as the trust and support of domestic and foreign customers and investors when it successfully issued a private bond worth 500 billion VND with a fixed interest rate of 8.3% per annum, to supplement capital for business activities. Previously, in 2023, Rong Viet had issued 4 bond issuances with a total value of over 2,500 billion VND, completing the listing of 6 bond codes on the HNX private bond trading system.
“Customer-centric” and accelerating digital transformation
Adhering to the viewpoint of “Customer-centric” and “Enhancing customer investment experience and efficiency”, Rong Viet has been and is making every effort to leverage the strength of its internal resources with good preparation in terms of both team and the ecosystem of technology, finance and investment products and services.
Recently, along with improvements to platforms such as eduDragon (online securities training), smartDragon (stock analysis and evaluation), hiDragon (virtual assistant supporting investment on Telegram), Rong Viet also introduces the m15Dragon margin service package with 3-day interest-free and preferential interest rates in 15 days.
It is expected that in the second quarter of 2024, Rong Viet will launch an account opening feature using eKYC technology combined with eContract (digital signature) to help customers open a new account completely online, without paper documents, saving time, safely and securely.
In 2024, Rong Viet will continue to accelerate its digital transformation, aiming to basically complete key digitalization projects in the 2021 – 2025 strategy.
Sustainable development for “Building a prosperous future”
With the goal of “Building a prosperous future”, Rong Viet always strives towards sustainable development, bringing real values to customers, shareholders, employees, the financial market and the community, and society.
With the community, Rong Viet has maintained its charity programs for the past 13 years. Recently, the “Going to school together – Wings of dreams” program has reached 2 boarding secondary schools in Phong Tho border district (Lai Chau), giving gifts to 700 students and sponsoring a well project for the school with a total value of over 370 million VND.
“Going to school together – Wings of dreams” for the 13th time in Lai Chau province
Continuing that mission, Rong Viet’s recent Annual General Meeting of Shareholders approved the profit distribution plan, allocating 0.75% of its 2023 separate after-tax profit (equivalent to nearly 2.5 billion VND) and planned 1% of its 2024 separate after-tax profit to the Charity Fund to increase the budget for community programs contributing to achieving sustainable development goals in the future.
