By the end of Q3. 2019, HSC recorded VND 328 billion in revenue and VND 141 billion in profit before tax. In the first 9 months, the total revenue was VND 927 billion, decreased 34% and achieved 56% of the year's target. Profit after tax reached VND 305 billion, down 49% compared to the same period in 2018, completing 45% of yearly target approved at AGM in April 2019.

Revenue structure:

In the 9M2019 total revenue structure, key businesses such as brokerage, margin lending, proprietary investment and financial advisory fees continued to be the main contributors to total revenue. However, business performances recorded a decrease compared to the same period in 2018, specifically:

• Revenue from brokerage fee reached VND 355 billion, accounting for 38% of total revenue, decreased 43% compared to 9M2018, of which:

Equity brokerage fee decreased by 41% mainly due to the 35% decrease in value of the whole market trading compared to 9M2018.

Derivative brokerage fee decreased by 60% mainly due to a reduction in transaction fees and HSC’s brokerage market share of only 10.5%, a significant reduction compared to 25.2% in 9M2018, mainly due to the trading fee competition policy between the peers.

• Revenue from margin lending business in 9M2019 reached VND 362 billion, a slight decrease of 9% compared to 9M2018 in the context of 35% decrease in transaction value over the same period. Mainly because HSC has been actively seeking large clients to lend margin to large-cap stocks, so the average margin loan balance is equivalent to the average in 9M2018.
• Proprietary investment revenue reached VND 154 billion, contributing 17% of total revenue in 9M2019, down 41% compared to 9M2018. The main reason was that in Q12018 HSC has been profited from the firm’s stock portfolio while HSC did not have similar profit in 9M2019.
• Advisory activities in 9M2019 reached VND 46 billion, accounting for 5% of total revenue, mainly contributed by public tender deals, bond issuance and private placement advisory.

Earnings per share (EPS) reached VND 1,177/ share, reaching 48% of 2019 target. Return on total assets (ROA) and return on equity (ROE) reached 5.1%. and 8.3%.

From June 28, HOSE has deployed Covered warranted and HSC has issued two codes: CMBB1902 and CMWG1903. Playing the role of both issuer and market maker for this product, HSC has completed the addition issuance for five warrants with a total of 25,000,000 warrants based on the new underlying assets and will be listed in Q4/2019 to meet the trading demand of investors. HSC expects to profit from covered warrant product in next quarter.

Communication contact:

Communication Department

Hochiminh City Securities Corporation (HSC)

Level 6, AB Tower, 76 Le Lai St., Dist.1

T  : (+84 8) 3 823 3299 - Ext. 124

E : hsc.communication@hsc.com.vn