Mr. Do Quang Vinh, Chairman of the Board of SHS
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The Chairman shared that SHS is expanding and harnessing its internal strengths and potential. The company has been exploring derivatives and striving to become a versatile securities company with diverse products to offer the best services to its clients. With the current CEO, Mr. Nguyen Chi Thanh, who used to manage the brokerage division of SHS, the Chairman is confident in the success of their brokerage development plan.
CEO Nguyen Chi Thanh emphasized their determination to revive the brokerage business, regain market share, and reclaim their position in this field. The short-term market share has already increased by 30%. To achieve this, SHS has implemented new policies for brokerage, customer care, and broker mechanisms to retain and attract a dedicated and customer-centric team.
In addition, SHS has deployed very synchronized brokerage development solutions, including trading software and fee incentive policies. “We are determined to boost our brokerage activities to regain market share,” said Director Thanh.
The investment segment is expected to contribute 35% in 2024.
Besides brokerage, the proprietary trading division of the company also attracted the interest of many shareholders at the meeting. A shareholder observed that SHS‘s proprietary trading business is substantial and growing and wanted to know if the company plans to further develop brokerage and margin lending or remain focused on investment. They also inquired about the potential impact on SHS in the future due to its reliance on proprietary trading.
Chairman Do Quang Vinh responded that SHS continues to offer a diverse range of services. This year, the company is focusing on investment banking (IB) to tap into the potential of its ecosystem. As investment capital flows into Vietnam are increasing, SHS aims to capitalize on this to meet the diverse needs of its clients, individuals, and stocks.
Regarding the role of the investment segment, CEO Nguyen Chi Thanh stated that SHS will operate like an investment fund, focusing not on daily trading but on stock selection based on professional analysis and long-term holdings. In 2024, this segment is expected to contribute up to 35%, and the first quarter has already shown promising results.
The CEO of SHS also emphasized that the company remains vigilant, continuously analyzing and evaluating market opportunities. They seek to invest in high-growth enterprises that offer profitable value to enhance their investment portfolio. Preferred investment sectors include technology, retail, consumer goods, and industries receiving FDI. SHS has made significant investments in FPT, MWG, FRT, and VTP, yielding considerable profits.
Mr. Thanh also shared that SHS‘s investment vision is long-term, spanning years, and the company has no plans to realize profits in the short term.
Target of a 51% increase in pre-tax profit for 2024.
SHS has set a target of nearly VND 1,845 billion in total revenue and over VND 1,035 billion in pre-tax profit for 2024, representing a 26% and 51% increase, respectively, compared to the performance in 2023. These targets are based on the positive outlook for the Vietnamese stock market this year, especially with the upgrade from a frontier to an emerging market.
Chairman Do Quang Vinh stated that the profit plan for 2024 is still relatively modest, and with the planned capital increase, the new capital will only be available for use from 2025 onwards. The company’s future targets range from VND 1,600 billion to VND 1,800 billion, and if the market conditions are favorable, SHS may set even more ambitious growth targets to deliver higher profits to investors.
In the first quarter of 2024, SHS recorded operating revenue of nearly VND 565 billion, a 17% decrease compared to the previous quarter. However, due to significant cost reductions, the company’s pre-tax profit reached VND 444 billion, almost nine times higher than the same period last year, and the highest in the last nine quarters since the first quarter of 2022.
As of the first quarter, the company has achieved 43% of the plan presented to shareholders.
| SHS’s after-tax profit by quarter |
Regarding the business situation in the upcoming quarters, CEO Nguyen Chi Thanh shared that with SHS‘s unique investment and business strategy, the second and third quarters are expected to be favorable. The growth drivers for SHS in 2024 lie in all business segments.
