“FPTS Unloads MSH Shares Ahead of May Song Hong’s Bonus Issue”

FPT Securities Joint Stock Company (FPTS, Stock Code: FTS, HoSE) has just registered to sell 1.19 million MSH shares of Song Hong Garment Joint Stock Company.

The transaction aims to conduct proprietary trading activities from June 3 to July 2, using matching and/or agreement methods.

If the transaction is completed, FPTS’s ownership will decrease from 9.59 million shares, accounting for 12.79%, to 8.4 million shares, representing 11.2% of Song Hong Garment’s charter capital.

Notably, FPTS intends to reduce its ownership as Song Hong Garment prepares for a bonus share issuance. According to the announcement, on June 3, Song Hong Garment will finalize the list of shareholders to issue bonus shares to increase capital from owner’s equity.

Specifically, Song Hong Garment plans to issue over 37.5 million bonus shares, equivalent to a 2:1 ratio (50%), meaning that for every 2 shares held, shareholders will receive 1 new share. The source of this issuance will come from undistributed post-tax profits as of December 31, 2024, according to the audited financial statements.

The additional issued shares will not be restricted from transfer. After the issuance, Song Hong Garment’s charter capital will increase from over VND 750 billion to VND 1,125 billion.

Additionally, MSH shares are FPTS’s most profitable investment in proprietary trading. In the consolidated financial statements for Q1 2025, FPTS’s financial assets at FVTPL had a book value of over VND 1,506 billion, slightly higher than the beginning of the year, with a temporary profit of 37%.

Of this, fixed-term deposits and certificates of deposit accounted for more than VND 839 billion, while government bonds and bonds of credit institutions amounted to nearly VND 651 billion.

In the listed stock portfolio, the investment in MSH shares of Song Hong Garment Joint Stock Company recorded VND 572 billion, 42 times higher than the book value.

In terms of business results in Q1 2025, FPTS recorded operating revenue of VND 312 billion, up 4.3% over the same period.

Among them, the lending segment contributed the most to revenue with nearly VND 174 billion, up 34%; profit from financial assets at FVTPL was VND 88 billion. Brokerage revenue, however, halved to just over VND 37 billion.

During this period, operating expenses increased by 34% to nearly VND 122 billion, with provisions for financial assets, handling of hard-to-collect debts and losses on financial assets, and borrowing costs for loans accounting for VND 77 billion.

As a result, FPTS’s net profit was nearly VND 153 billion, down 8% compared to Q1 2024.

As of March 31, 2025, FPTS’s total assets exceeded VND 10,706 billion, up 10% from the beginning of the year.

The largest component of the asset structure was loans, amounting to nearly VND 7,612 billion, an increase of 8% over three months. Of this, over VND 7,000 billion was for margin trading.

In terms of capital sources, FPTS’s borrowings amounted to nearly VND 6,088 billion, an increase of 11% from the beginning of the year, all of which were bank loans.