Ho Chi Minh City, June 09, 2020 

Ho Chi Minh City Securities Corporation (HSC, HCM code - HOSE) will organize the 2019 Annual General Meeting of Shareholders at New World Hotel, 76 Le Lai, District 1, Ho Chi Minh City on June 23rd 2020. 

Board of Directors proposals for approval:

  • The Audited Financial Statements for the year ended 31 December 2019
  • Report of the appointment of Chief Executive Officer
  • FY2019 final cash dividend rate
  • FY2020 dividend plan
  • FY2019 profit distribution plan
  • Appointment of the independent audit firm for the fiscal year 2020
  • Proposal for the supplements to HSC Business Registration Certificate referring to English name and abbreviation of company name
  • Approval of HSC Regulations of Online Annual General Meeting
  • At the meeting, the Board of Directors will report the 2019 business performance and propose 2020 business plan with other important contents.

In 2019, HSC posted VND1,262 billion of revenue and VND432 billion of net profit, which translated to 26% and 36% decreases from last year, respectively. The sharp fall of 30% in trading value as well as the sluggish market condition led to the decline in profit and the miss of expectation in 2019.

In 2020, HSC targets to achieve a total revenue of VND1,297 billion. The target net profit after tax is VND453 billion. The return on average equity ratio (ROAE) in 2020 is expected to be at 10.8%. The business plan is built on assumptions about macroeconomic conditions, trading value of stock market, derivatives and HSC’s expected revenue structure of the company. Accordingly, the securities brokerage fee, margin loans, and proprietary investments businesses are expected to generate the most revenue to HSC in 2020, accounting for 37%, 34% and 24% of total revenue, respectively. 

Cơ cấu doanh thu theo lĩnh vực kinh doanh

HSC’s key business strategies in 2020:

  • Focus on restructuring retail brokerage team and diversifying products and service portfolio to better serve clients. At the same time, launching the digital platform for individual clients with optimal experience and utilities.
  • Introduce new margin lending model, which was built on global best practices to further enhance client experience. Metrics and formulas are applied consistently across investment products and were simplified, hence are easy for clients to understand. Furthermore, the new model allows clients to mobilize funds across accounts and withdraw cash based on their margin loan balances.
  • Continue to ramp up new product development and market making activities for the purpose of risk hedging and to support client trading. In addition, proprietary investment expects to drive revenue by bond investment, especially corporate bond, which usually have lower risk than other asset classes.
  • Optimize operating costs through the restructuring of human resources, offices, along with the improvement of regulations and processes on operating costs.
  • Invest in infrastructure and technology solutions with an aim to provide modern digital trading solutions to individuals and institutional clients.

Regarding dividends, after paying the FY2019 interim dividend at the rate of 5% (equivalent to VND500 per share), paying in cash on December 19, 2019, the BOD proposes the AGM to approve the FY2019 final cash dividend rate at 7% of par value (equivalent to VND 700 per share). Expected record date will be on 10 July 2020 and expected payment date will be on 31 July 2020. The AGM also authorizes the BOD to decide FY2020 dividend rate based on HSC financial performance at the dividend payment time, in which the proposed FY2020 dividend payout rate is 12%.

In 2020, due to negative impact of the Covid-19 epidemic, the US-China trade war, the competition from foreign securities companies with the advantage of cheap capital, the removal of the floor transaction fee... have caused many challenges for domestic securities companies and HSC in particular. In this context, HSC still performed positive results for the first 6 months of 2020. In which, revenue is estimated at VND 655 billion, an increase of 9.4% over the same period in 2019, profit after-tax is estimated at VND 245 billion, an increase of 27% compared to the first 6 months of 2019. Revenue and profit after tax respectively achieved 50% and 54% of the 2020 plan. This result is a statement of an appropriate business strategy from the Board of Directors and endless efforts of HSC team in the difficult period.

For documents of the General Meeting of Shareholders, please refer here