Annual General Meeting of TCSC was held on the morning of June 17, 2024
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Vice Chairman of the Board, Nguyen Dong Hai, stated that the AGM passed a resolution to increase capital in 2022. Back then, the stock market was at the 1,500-point mark, and trading and investment activities were very vibrant. However, this was also when the market started to decline.
Realizing this downward trend, the Board decided that it would not be beneficial for the shareholders or the company to raise additional funds at that time, as it could result in losses. With the intention of protecting the shareholders’ capital, the leadership chose to halt the capital increase.
In the future, when the market conditions improve, TCSC will restart the capital increase initiative.
Speaking about the company’s performance, Mr. Nguyen Duc Hieu, Board Member and CEO, acknowledged that market volatility and low liquidity had impacted TCSC’s business segments in 2023. The company’s net profit for 2023 was 58.4 billion VND, a 16.5% decrease compared to 2022 (70 billion VND). Based on these results, TCSC plans to distribute a 5% stock dividend, equivalent to issuing 5.8 million shares.
In 2024, Mr. Nguyen Khanh Linh, Chairman of the Board, shared that the company is focusing on strengthening and developing human resources in various segments, implementing digitization and digital transformation to innovate its business model. TCSC is also concentrating on asset management through its subsidiary, TCAM.
Additionally, TCSC will cross-sell products and services within the Saigon 3 Group of companies, emphasizing risk control in investment and margin lending.
Regarding the business segments’ direction for 2024, CEO Nguyen Duc Hieu stated that proprietary trading, margin lending, and brokerage would continue to account for the largest proportion of revenue. In the proprietary trading segment, the company aims to invest in blue-chip stocks with strong fundamentals. TCSC’s approach is to balance profitability and risk.
In margin lending, the company will provide loans for blue-chip stocks or those with solid fundamentals and good liquidity. Mr. Hieu assessed that the margin segment is expected to perform well due to favorable market conditions, increased liquidity, and high demand for margin lending from customers. However, challenges include limited capital sources and less competitive funding costs.
In the brokerage segment, the company will introduce derivatives to complete its product portfolio and enhance its competitiveness.
The company targets a consolidated net profit of nearly 81 billion VND, a 38% increase compared to 2023. The expected dividend payout ratio is 5%.
When asked if the 38% growth target for net profit in 2024 was too conservative, Vice Chairman Nguyen Dong Hai explained that the main bases for this year’s revenue plan are the 18% return on investment goal for the proprietary trading segment, a minimum lending rate of 11.5% for the margin lending segment, and brokerage fees calculated based on an estimated total transaction value of 40,000 billion VND for 2024.
The performance of the investment advisory and investment banking segments will depend on the deals the company finalizes this year. The Board considers that these segments are being managed with significantly more caution than before.
The Board’s profit plan for 2024 is based on a risk management perspective, aiming to ensure the security of shareholders’ capital.
Yến Chi
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