Closed profit on FPT stock investment, expected profit to exceed plan

T-Corp Shareholders' Meeting: Profit has been closed onFPT stock investment, expected profit to exceed plan

At noon on June 8, the 2024 General Meeting of Shareholders of Tri Viet Asset Management Group Joint Stock Company (T-Corp, code TVC - HNX) took place in Hanoi .

Shareholders continue to question founder Pham Thanh Tung

At the discussion session, shareholders continued to question T-Corp's Board of Directors about founder Pham Thanh Tung.

Previously, as reported by Dau Tu Electronic Newspaper, at the General Meeting of Shareholders on June 3 of Tri Viet Securities JSC (code TVB - HoSE) - a subsidiary of T-Corp, information about Mr. Pham Thanh Tung, founder and former Chairman of the Board of Directors of TVC and TVB was also of great interest to shareholders and Ms. Nguyen Thi Hang, Chairman of the Board of Directors of T-Corp, responded.

Then, on June 6, the Hanoi People's Procuracy issued an indictment to prosecute the former Chairman of the Board of Directors of Tri Viet Securities Joint Stock Company, former Chairman of the Board of Directors of Tri Viet Asset Management Group Joint Stock Company Pham Thanh Tung (born in 1979) and two employees of Tri Viet Securities Joint Stock Company including Do Thi Hong Hanh (born in 1986), Nguyen Manh Thin (born in 1988) for the same crime of "Stock market manipulation" as prescribed in Article 211, Clause 2, Point c-Penal Code.

Authorities determined that former Chairman of Tri Viet Securities Pham Thanh Tung directed the manipulation of the stock market, creating fake supply and demand, causing 31 investors to lose more than 3.3 billion VND. This is the second case in which Mr. Pham Thanh Tung has been prosecuted for "Stock Market Manipulation".

Speaking to shareholders at the meeting on the afternoon of June 8th, Ms. Nguyen Thi Hang, Chairwoman of the Board of Directors of T-Corp, affirmed that this was a personal matter of Mr. Tung and did not affect the Company.

Reiterating the indictment of the Hanoi People's Procuracy, Ms. Hang further clarified that Mr. Pham Thanh Tung directed the use of TVB and TVC shares deposited in internal group accounts as collateral to borrow money from securities companies, and used the borrowed money to invest in other securities.

In the first months of 2020, due to the stock market being affected by the Covid-19 pandemic, stock codes fell in price, leading to many investment loans being called-margin, having to sell collateral to repay debts. TVB and TVC were also subject to order-matching transactions and agreements to roll over debts during that time. Therefore, 31 investors lost more than 3.3 billion VND, in addition, Mr. Tung also lost 130 billion VND from investment activities and roll over debts during the above period.

The incident occurred during the early period when the amended Securities Law of 2019 came into effect, therefore Mr. Pham Thanh Tung did not have time to become aware of the violations.

“On behalf of the Board of Directors, I would like to send our thanks to shareholders, customers, and all employees for accompanying the Company through difficult times; we hope to continue to receive the support and trust of shareholders, customers, and all employees in the next journey,” said Ms. Hang.

Ms. Nguyen Thi Hang, Chairwoman of the Board of Directors of T-Corp, chaired the Company's 2024 Annual General Meeting of Shareholders. (Photo: KT)

Set consolidated profit target of 340 billion VND

At the meeting, shareholders approved the reports and proposals of the Board of Directors. Accordingly, in 2023, T-Corp recorded revenue of VND 70 billion and profit after tax of VND 278.6 billion. The reason for the increase in profit after tax was mainly due to the reversal of provisions for devaluation of securities when the prices of stocks in the investment portfolio of the Parent Company and Subsidiaries increased and the companies implemented more effective cost management.

In 2024, T-Corp set a target for the parent company to achieve total revenue of VND 380 billion and after-tax profit of VND 250 billion. The consolidated results are projected to show total revenue of VND 610 billion and after-tax profit of VND 340 billion.

According to the consolidated financial report for the first quarter of 2024, T-Corp recorded revenue of VND 90.25 billion and profit after tax of nearly VND 159 billion.

Sharing with shareholders, Ms. Nguyen Thi Hang said that in the short term, the Company will focus on good management and operations, prioritizing safety, improving capacity and culture, reviewing and cutting costs effectively, and managing the subsidiary TVB well.

Regarding debt recovery, the company has set aside a 70% provision and is currently pursuing debt collection. “We are confident that we will recover all outstanding receivables. The signals so far are positive; our partners are cooperating honestly. Once the debt is recovered, it will be a profit for the company,” Ms. Hang stated.

Regarding business development, the company will focus on core areas of analysis and investment. At the same time, it will review outstanding issues and past legal problems to learn from experience and ensure stable business operations.

In the long term, we will gradually expand our business, prioritizing quality over quantity, improving the quality of analysis and screening of businesses for medium-term investment. Simultaneously, we will enhance corporate governance, actively pursue digital transformation, focus on legal matters, and strengthen our legal department.

Closed profit on FPT stock investment

In response to a shareholder's suggestion to raise the after-tax profit target even higher, Mr. Nguyen Duc Thanh, Director of Investment, stated that achieving the profit target of 250 billion VND was already very difficult.

"Achieving even more is very difficult. We recently 'took profits' on FPT shares, meaning our investment capital has grown, the amount of money available for use has increased, which is why we raised our target to 250 billion VND," Mr. Thanh explained.

While acknowledging that the current stock market doesn't offer many attractive opportunities, Mr. Thanh affirmed that T-Corp's Investment department will strive to achieve even better results than planned.

"We have a profit buffer after taking profits from FPT, and our current portfolio includes a very strong stock, MWG, which is expected to remain strong for another 12-24 months or even longer," Mr. Thanh said.

To clarify the basis for setting such a high investment return rate, Mr. Thanh shared T-Corp's investment strategy. Specifically, the company divides its investments into long-term, medium-term, and short-term timeframes.

Specifically, long-term investments should focus on industries with long-term growth potential, such as Tri Viet Securities (TVB); medium-term investments should be in listed companies; and short-term investments should concentrate on blue-chip, highly liquid stocks.

Specifically, with regard to TVB, the company has strengthened its governance and operational control over TVB, bringing in personnel and actively working alongside TVB (Mr. Nguyen Duc Thanh was recently elected to the Board of Directors of TVB).

For medium-term investments (12-24 months), T-Corp will conduct long-term macroeconomic and political research, then select promising sectors, and based on that, choose exemplary companies within those sectors, as exemplified by its success with stocks like FPT and HPG…

For short-term investments, the company could use margin, but learning from past experiences, the portfolio structure is designed to avoid unsystematic risks.

In addition, the company is also researching to expand its investment in derivatives and bonds, investing in businesses that are not large in terms of capitalization but have promising new industries. “We will still invest in listed companies, not OTC. We are not angel investors,” Mr. Thanh said.

To implement the above investment strategies, Mr. Thanh said, T-Corp is promoting recruitment and talent acquisition.

Source: https://baodautu.vn/dhdcd-t-corp-da-chot-loi-khoan-dau-tu-co-phieu-fpt-ky-vong-lai-vuot-ke-hoach-d217181.html