In the recently released financial report for the first quarter of 2024, DNSE achieved a total revenue of VND 181.5 billion, a notable increase of VND 31 billion or 21% compared to the same period in 2023. The major contributor to this revenue growth was the brokerage revenue, which surged by VND 19.6 billion, representing a 158% increase.
On the expense side, the cost of business operations decreased by VND 27.8 billion, equivalent to a 36% reduction compared to the first quarter of 2023. The primary factor driving this reduction was the decrease in provisions for financial assets and borrowing expenses, which declined by VND 37.6 billion, a substantial drop of 78%. Losses from financial assets recognized through profit/loss (FVTPL) also reduced by VND 11.4 billion, a notable 155% decrease compared to the same period last year.
Fueled by the robust revenue growth, DNSE’s after-tax profit for the first quarter of 2024 reached VND 70.1 billion, a remarkable increase of VND 30.7 billion or 78% compared to the first quarter of 2023.
In addition to the positive business growth, DNSE witnessed an impressive surge in new account openings and assets under management (AUM) during the first quarter, driven by the company’s multi-channel customer acquisition strategy.
Specifically, DNSE acquired over 120,000 new accounts in the first quarter, capturing 30% of the market share for new account openings, solidifying its position as the industry leader in this metric. According to the data presented at the Annual General Meeting of Shareholders held on April 16th, DNSE’s management disclosed that the company currently manages VND 37.8 trillion, representing 1.7 billion securities, reflecting a growth of over 40% compared to the beginning of the year. Notably, the number of clients with assets exceeding VND 1 billion at DNSE grew by 30%, while the group of clients with an average NAV of VND 100 million or more also increased by over 30% in the three-month period.
In the derivatives segment, the first quarter of 2024 also marked DNSE’s debut in the top 5 of the HNX derivatives brokerage market share rankings, capturing 4.01% of the market share within a year of launching its derivatives services. This business segment is a strategic focus for DNSE in the current year, and the company is offering incentives such as free derivatives trading and organizing the “Dragon of Shorts” competition with attractive prizes.
As a pioneering technology-driven brokerage firm, DNSE has established a strong presence in the market through its strategic initiatives and innovative products aimed at providing a differentiated, user-friendly, and convenient platform for investors. Among its offerings, the Margin Deal system for managing and lending margin on a per-trade basis, and the Fin X feature for automated loan recommendations, have been instrumental in driving DNSE’s margin revenue growth.
According to the latest announcement from the Ho Chi Minh Stock Exchange (HoSE), the KRX trading system is scheduled to go live on May 2nd, 2024, assuming successful testing on April 30th, 2024. With the introduction of the much-anticipated intraday trading (T+0) feature, DNSE’s Margin Deal model is expected to play a pivotal role in enhancing clients’ investment efficiency through its unique per-trade and per-order management and execution capabilities.
Commenting on the progress of KRX system implementation during the recent Annual General Meeting of Shareholders, Ms. Pham Thi Thanh Hoa stated, “With our existing advanced technological infrastructure, we are confident in meeting the demands of intraday trading or high-frequency trading that will emerge with the launch of the KRX system. The first phase will primarily focus on applying current market products, while enhanced products such as intraday trading will be introduced in the second phase.” DNSE has already initiated the development of system features for these enhanced products to ensure readiness for deployment as soon as the KRX system becomes operational across the market.
Regarding margin lending, in addition to leveraging its own capital resources, DNSE has established a model where partner institutions provide capital to investors on DNSE’s platform, enabling more efficient capital utilization compared to traditional brokerage models.
In line with its focus on technology and leveraging artificial intelligence to empower investors, DNSE recently launched two new features: Ensa, a virtual assistant capable of answering queries and providing investment advice via chatbot; and Senses, a comprehensive information portal for evaluating and scoring stocks. These resources have gained increasing adoption, with approximately 13-15% of investors regularly interacting with the Ensa virtual assistant, and the majority of DNSE’s clients utilizing Senses to assess stocks of interest.
Following the successful completion of its initial public offering (IPO) in early 2024, DNSE is currently finalizing the necessary procedures and expects to list its DSE shares on the HoSE in June 2024.
With a competitive strategy centered around user-friendly trading platforms and a diverse range of financial products, complemented by a comprehensive distribution network, DNSE is well-positioned to execute its business plans and accelerate towards achieving its targets for 2024.
