Ban Viet Securities changes name, expected to make trillions of dong in profit in 2023

Recently, Ban Viet Securities Corporation (VCSC - stock code: VCI) announced documents on the Minutes of the Board of Directors meeting and the 2023 business plan.

Accordingly, Ban Viet Securities plans to achieve operating revenue of VND3,246 billion, nearly 90% higher than the 2022 result, and pre-tax profit of VND1,000 billion, down 5.6% compared to the previous year's results. The company said the plan is based on the assumption that the VN-Index will fluctuate around 1,100 points by the end of 2023.

This plan will be submitted to shareholders for approval at the 2023 Annual General Meeting of Shareholders, taking place on March 30 in Ho Chi Minh City. In addition, VCSC is expected to propose changing its name to Vietcap Securities Joint Stock Company at this meeting.

According to VCSC, being known by many different names such as VCSC, Viet Capital Securities, VCI, Ban Viet Securities has diluted the company's brand strength and therefore needs to quickly unify its brand identity.

On the other hand, the name “Ban Viet Securities” may confuse customers with some other domestic organizations with similar names. Meanwhile, the name “Vietcap” is very short, unique and has been known to investors (especially institutional investors) in the domestic and foreign financial markets.

Regarding the financial picture, in the fourth quarter of 2022, Ban Viet achieved revenue of VND 796 billion, down 30% over the same period, notably financial consulting revenue decreased by 97% from VND 233 billion to VND 7 billion. Proprietary trading activities also had a net loss of VND 31 billion. As a result , VCSC's after-tax profit was VND 28 billion, down 94% compared to VND 467 billion in the fourth quarter of 2021.

In 2022, VCSC's operating revenue reached VND3,156 billion, down nearly 15% year-on-year. Pre-tax profit reached nearly VND1,060 billion, down 43% year-on-year. With the achieved results, the company has only achieved 97% of its revenue target and nearly 56% of its profit plan for 2022.

Finance - Banking - Ban Viet Securities changes name, expects to make a profit of thousands of billions of VND in 2023 — VCI stock performance over the past year (Source: Tradingview).

In 2023, VCSC also plans to issue 2 million ESOP shares at VND12,000/share, less than half of the current market price. The expected implementation time is in 2023 after being approved by the State Securities Commission. ESOP shares will be restricted from transfer for 1 year from the date of issuance.

On the stock market, at the end of the morning session on March 9, VCI shares were trading around VND 28,050/share, down 0.18%, however, compared to the bottom in November 2022, VCI shares have increased by more than 55% in market price .

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