Vietcap enjoys trillions of dong in profits from investment in IDP International Milk

According to the newly released financial report for the second quarter of 2023, Vietcap Securities JSC (HoSE: VCI) recorded a decline in revenue and profit, reaching VND501 billion and VND117 billion, respectively, down 52% and 61% over the same period last year.

The biggest loss was from self-trading activities, which only brought in 45 billion VND, compared to 195 billion VND in the same period last year, a decrease of nearly 77%. On the contrary, the activities that brought in the largest revenue were still lending and brokerage.

In the second quarter, interest from loans and brokerage contributed to Vietcap VND169 billion and VND139 billion, down 6% and 55% respectively compared to the same period. In addition, operating expenses also decreased by 73% to VND140 billion, which partly saved the company's profits.

In the first 6 months of the year, Vietcap's operating revenue decreased by 46% to VND 1,000 billion, after-tax profit reached VND 190 billion, down 74% over the same period. In 2023, VCI plans to achieve revenue of VND 3,246 billion, pre-tax profit of VND 1,000 billion, compared to the results achieved in the first half of 2023, the company has completed 21% of the revenue target and 19% of the annual profit target.

As of the end of June 2023, the company's total assets reached VND 14,519 billion, a slight increase compared to the beginning of the year.

Of which, financial assets through profit/loss (FVTPL) accounted for VND555 billion, including VND170 billion of listed stocks and VND384 billion of unlisted stocks. AFS also increased sharply by more than VND1,000 billion compared to the beginning of the year to more than VND3,500 billion. The increase mainly came from the profits of stocks held with large proportions such as KDH, IDP, MSN, BCM.

Notably, the investment in International Dairy Products (IDP) is currently earning more than VND 2,200 billion in profit according to market value but has not been recorded in the company's business results.

In addition, Vietcap also allocates investment capital to other codes such as HPG, CTG, VNM, MWG, BCM, etc. with current original prices of up to tens of billions of VND per share. In addition to self-trading, the company's margin debt also increased slightly to VND 5,395 billion.

Recently, Vietcap signed a syndicated loan contract for a loan worth 45 million USD, equivalent to 1,062 billion VND. The loan was arranged by Shanghai Commercial and Savings Bank, Ltd. through its Offshore Banking branch with short-term interest rates based on the international currency market .

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