chevrons

Back to Previous Page

Vietnam Securities Brokerage Sector – Q1/2022 Results and Outlook

Vietnam Securities Brokerage Sector – Q1/2022 Results and Outlook

Q1/2022 Results

  • Despite global uncertainties, Vietnam’s equity market was relatively solid in Q1 (VNINDEX -0.4%), while the number of new securities accounts opened in 5M2022 surged to nearly 1.4mn, and total trading accounts reached 5.7 million, which is about 5.8% of the Vietnamese population. The average daily trading volume also increased by 67.0% y/y reaching USD1.1bn.
  • Thanks to robust market participation, the securities brokerage sector continued to post strong financial results. We have taken 9 securities firms as a proxy for the whole sector. Net revenue increased by 32.1% y/y. Of which, brokerage income went up by 66.9% y/y, and accounted for 30.0% of total net revenue. Margin lending income rose 114.1% y/y, making up 24.3% and proprietary trading declined by 12.7% y/y, making up 31.4%.
  • Gross profit increased by 44.7% y/y, faster than that of revenue mostly thanks to the lower funding cost of the margin lending segment and enhanced gross margin of the brokerage segment thanks to higher scale. Operating expenses also increased strongly mostly due to salary and bonus. Overall, net profit of the sector increased by 33.1% y/y.

Outlook

  • Q2/2022 so far, the market has corrected with the VNINDEX dropping by 18.4%. The trading volume has also declined by 28.5% q/q. Nevertheless, we see this consolidation after two years of strong performances (VNINDEX +14.9% in 2020 and +35.7% in 2021) is short lived. The underlying economy is running strongly (2022F GDP growth of 6.4% after 2.9% in 2020 and 2.6% in 2021). At current market levels, 2022F P/E of VNINDEX is 11.2x. The last time a similar level was reached was in Q2/2020 when COVID-19 just broke out globally.
  • Due to weak market sentiment and reductions in trading volumes in the last few months, we expect Q2/2022 results will be weaker. However, as a positive economic and earnings outlook remains, we forecast the trading volume and margin lending demand to rebound in H2/2022. Overall, we estimate net profit of the sector to decrease by 6.5% y/y, although sector EPS growth will be more negative, -26.1% y/y, due to dilution from equity capital raising in Q4/2021 and 1H/2022.

 

Company ratings and target prices are accessible for clients only.

If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.

Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.

 

Featured image credit: 

Related News & Insights
Find out more navigation_button
news

Summary of Q1 2025 results and outlook of Dat Xanh Real Estate Services (DXS VN) The real estate market recorded moderate new supply, as many projects approved in late 2024 and early this year needed more time to complete launch sales procedures. Hanoi continued to lead new supply, while HCMC remained constrained by legal hurdles. […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Sabeco JSC (SAB VN) Sabeco reported a Q1 2025 decline in net revenue by 19.1% y/y to VND5,811bn, mainly due to lower beer consumption following the implementation of Decree 168/2024, which raised drink-driving penalties. Beer sales (88.2% of total sales) declined 15.3% y/y with volumes at 274 […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Vinamilk JSC (VNM VN) Net revenue declined 8.3% y/y to VND12,935bn in Q1/2025, mainly due to a 12.9% fall in local sales (77.4% of total) following the strategic phase-out of underperforming distributors in the traditional channel. Although the average selling price rose by 2% to partially pass […]

Read Newsarrow
Find out more navigation_button