SHS reports double profit, self-trading flourishes with banking and retail stocks

Recently, Saigon - Hanoi Securities Corporation (HNX: SHS) announced its separate financial report for the third quarter of 2023. Accordingly, the company's operating revenue reached nearly VND 484 billion, an increase of 62% over the same period last year. In which, the proprietary trading, brokerage, interest from loans and receivables all grew.

In the profit from financial assets recognized through profit/loss (FVTPL), the company recorded a 2.3-fold increase over the same period to VND195 billion. With loss from FVTPL also increasing sharply by 93% to VND149 billion. SHS recorded a self-trading profit of VND46 billion this quarter, higher than the VND7 billion of the same period.

In the third quarter, SHS's brokerage revenue also brought in VND 74 billion, an increase of 20% compared to the third quarter of 2022. However, the remaining business segments such as underwriting, investment consulting, financial consulting, securities custody, etc. recorded a significant decrease. Even operating expenses tended to increase by VND 475 to VND 207 billion.

After deducting expenses, SHS still recorded a profit after tax of nearly 199 billion VND in the third quarter, an increase of 125% over the same period last year, equivalent to a 2-fold increase.

Accumulated in the first 9 months of 2023, the company's revenue and after-tax profit also increased sharply by VND 1,469 billion and VND 380 billion, respectively up 57% and 19 times higher than the profit of the first 9 months of 2022. Compared to the achieved results, the company has completed 76% of the revenue target and 43% of the annual profit target.

At the end of September, SHS's total assets decreased slightly by 0.8% to VND 10,806 billion, the largest proportion was still margin loans and customer sales advances reaching VND 3,833 billion, up 62% compared to the beginning of the period, of which margin debt increased by VND 1,400 billion to VND 3,681 billion.

In the FVTPL asset category, the book value is over VND3,535 billion, down VND564 billion compared to the beginning of the year. Accordingly, SHS currently has VND1,766 billion in listed shares, VND765 billion in unlisted shares, VND644 billion in listed bonds, VND350 billion in unlisted bonds and VND10.5 billion in fund certificates.

The company's FVTPL portfolio holds several large stocks such as EIB (VND311 billion), MWG (VND184 billion), FRT (VND184 billion). These stocks are all temporarily earning tens of billions of dong as of September 30. SHS has held EIB for a long time with a large proportion, while the retail stocks MWG and FRT were bought heavily in the last quarter.

Notably, SHS also has financial assets available for sale (AFS) of more than VND 475 billion, mostly in SHB and TCD shares. At the end of the financial statement, the company was temporarily making more than double the profit from its investment in SHB, while TCD lost 54% .

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