Third quarter profit down 71.6% year-on-year
Business plummets SmartInvest Securities JSC (AAS), formerly known as Gia Anh Securities JSC, was established in 2006 with a charter capital of VND22 billion. Its main business activities are securities investment consulting, corporate finance consulting, securities brokerage, securities custody, securities trading...
In the third quarter of 2023, SmartInvest achieved net revenue from securities trading of VND 151.5 billion, down by half compared to the same period. Gross profit was VND 49.5 billion, equivalent to a gross profit margin of 32.7%.
In SmartInvest's revenue structure, the main source of revenue comes from financial assets recorded through FVTPL profit/loss with VND 101.8 billion. Revenue from securities brokerage services decreased sharply from VND 5.1 billion to only VND 3.4 billion.
Profits plummet, SmartInvest Securities (AAS) shares lose 37% in just 1 month (Photo TL)
Revenue from securities underwriting and agency services increased from VND200 million to VND42 billion. Revenue from securities custody services also increased fivefold to VND1.6 billion. SmartInvest Securities' after-tax profit reached nearly VND24 billion, down 71.6% compared to the same period last year.
In fact, the decline in profits of SmartInvest Securities has started since the fourth quarter of 2022. AAS's profits have dropped from around 100 billion VND to only around 2-30 billion VND. The reason given by SmartInvest is the decline in revenue in many securities brokerage activities.
SmartInvest's ecosystem issues hundreds of billions of dong in bonds, the company has just been fined for not disclosing bond information
SmartInvest's name has been associated with corporate bond issuances, attracting the attention of investors. From 2018 to 2022, SmartInvest's "ecosystem" has issued more than 1,600 billion VND in bonds with interest rates of 9-12%/year.
Notably, SmartInvest has issued 3 bond lots with codes: AAS.1.20, AASL1921001, AASH2227991 in 2019, 2020, 2022 with a total value of 128 billion VND. Of which, bond lot AASL1921001 and lot AAS.1.20 have completed settlement. Bond lot AASH2227001 will mature in February 2027. SmartInvest has bought back 60 billion VND of this bond lot before maturity, the remaining value is only 68 billion VND.
In addition, SmartInvest Consulting & Management Company Limited also issued 2 lots of bonds with codes TQSCH2131001 and TQSCH2227001. Lot of bonds TQSCH2131001 was issued from December 2021 with a total issuance value of VND 376.8 billion, interest rate of 10.5%, term of 10 years and was fully repurchased from November 2022.
With bond lot TQSCH2227001, issued from June 2022, maturing in June 2027 with a total issuance value of VND 200 billion, interest rate of 10.5%/year.
With Pyxis Asset Management JSC, a unit related to SmartInvest, the company also has 2 bond lots issued in 2021 including: Lot DMDCH2124001 worth 160 billion VND, issued in July 2021, term of 3 years; Lot DMDCH2131002 worth 105 billion VND, issued in December 2021, term of 10 years. Both of these bond lots have been bought back since October 2022.
After continuously issuing hundreds of billions of dong in bonds, SmartInvest was recently fined more than 160 million dong by the State Securities Commission. The reason is that SmartInvest did not publish a report on the use of capital from bond issuance, the payment of interest and principal of the bonds issued by the company.
Stocks plummet, 37% of value "evaporated" in just 1 month
On the stock market, SmartInvest Securities JSC's shares have the code AAS, listed on UPCoM. On September 13, 2023, the code AAS peaked at VND 13,100/share.
However, in the following trading sessions, AAS continued to plummet and lose value. As of the trading session on October 27, 2023, the AAS code was only traded at VND 8,200/share. This means that the stock has lost 37% of its value in just over a month.
In the last 10 trading sessions, ASS code only increased in price in 3 sessions, remained unchanged in 1 session and had 6 sessions of red and lost value. Trading volume per session remained high, sometimes reaching nearly 30 million shares. In particular, sessions with high trading volume were often losing value, showing relatively strong selling pressure.
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