VNDirect Securities eyes 5 per cent profit growth in 2020

VNDirect Securities, 2020 annual shareholders' meeting, corporate earnings, forecast, prediction, COVID-19 pandemic, Vietnam economy, stock market, VN Index, HNX Index, equity market, Vietnam News, Politics, Business, Economy, Society, Life, Sports, Environment, Your Say, English Through the News, Magazine, vietnam war, current news, Vietnamese to english, tin viet nam, latest news today, english newspapers, the vietnam war, news latest, today news headlines, nation news paper, today breaking news, vietnamese culture, vietnam history, bao vietnam, vietnam economy, today headlines, national news headlines, vietnam war summary, vietnam culture, vietnam government, news headline, daily nation today, daily nation newspaper headlines, newspaper headlines today, news website, báo online, headlines news, news site, war in vietnam, tin vietnam, vietnam people, vietnam today, vietnamese news, tin viet nam net, viet to english, news headlines for today, news paper online, national news in english, current news headlines, vietnam war history, english news papers, top news headlines, today hot news, english news headlines, vietnam conflict, up to the minute news, english daily, viet news, news highlights, viet news, today international news, govt news, the vietnam war summary, vietnam exports, việt nam, bao vn net, news.vn, baovietnam, thongtanxavietnam, vietnam plus, vietnam news agency
VNDirect Securities Corporation's annual shareholder meeting on Tuesday. — Photo courtesy of VNDirect Securities

HÀ NỘI — VNDirect Securities Corporation projects its total post-tax profit may increase 5 per cent year-on-year to VNĐ405 billion (US$17.5 million) in 2020.

Total revenue is forecast to gain 17 per cent on-year to VNĐ1.87 trillion, according to acting CEO Đỗ Ngọc Quỳnh.

The earnings forecasts were made upon VNDirect’s expectation that the benchmark VN-Index on the Hồ Chí Minh Stock Exchange will move between 840 points and 920 points in 2020.

“Average market liquidity is estimated to increase by 14.5 per cent from the same period of last year,” the brokerage firm said in a filing to shareholders at the annual meeting on Tuesday.

“Subject to the basic scenario, foreign investors are not really excited about the Vietnamese market this year, thus, the market is mostly supported by domestic investors.”

VNDirect also delivered two other projections for this year’s performance, in which the VN-Index may end 2020 in the ranges of 940-810 points or 960-1,000 points.

In the better forecast, positive signs will appear, for example, the total weight of Vietnamese shares in the MSCI Frontier Index will gain, the trend of global quantitative easing will direct cheap capital to flow into emerging markets, and foreign investors will return to net-buying from July.

Under this forecast, trading liquidity will grow 20.8 per cent year-on-year in 2020 and post-tax profit is estimated at VNĐ490 billion.

Meanwhile, if the VN-Index falls back to the 940-810 range, average trading liquidity on the local market will increase by only 5.8 per cent year-on-year in 2020.

Post-tax profit may fall to VNĐ320 billion under this projection.

In 2019, VNDirect earned VNĐ1.5 trillion in total revenue, down 7.8 per cent year-on-year, and VNĐ383 billion in post-tax profit, up 2.7 per cent year-on-year.

The company’s financial report 2019 pointed out that revenues from brokerage services and proprietary trading lost 34.5 per cent and 12.8 per cent year-on-year.

But a 113.6 per cent surge in revenue from investment banking, which was VNĐ48 billion, helped offset those losses.

VNDirect blamed losses in proprietary trading and brokerage services on the sharp drop of the local market in 2019 caused by “disappointing earnings growth of listed companies, the absence of notable IPOs and the delay of State-owned enterprises’ divestments, and the vibrant corporate bond market which has partially absorbed money from the equity market”.

In the second half of 2020, the company expects the stock market will recover as the amended Law on Securities will “improve share quality, enhance the transparency and better protect investors’ interests.”

More domestic and foreign funds are expected to enter Việt Nam’s stock market and accelerate the process of upgrading the market to the “emerging markets” level, the company said.

In addition, the Government’s divestment plans in large-cap companies like dairy producer Vinamilk, petrol firm Petrolimex, the Vietnam Engine and Agricultural Machinery Corporation (VEAM), tech group FPT and insurer Bảo Minh may be executed in the short term, probably this year, VNDirect said.

“However, the progress of equitisation and divestment in SOEs may be difficult to improve in 2020 because the bottlenecks in the equitisation process have not been thoroughly solved, especially the issues related to land pricing.” — VNS

News Related

OTHER NEWS

Nearly US$7 million of public investment disbursed in six months

Disbursement of public investment in the first six months of 2020 amounted to nearly VND156 trillion (US$6.73 million), fulfilling 33.1% of the plan set by the National Assembly and the Prime Minister, higher... Read more »

Teleconference seeks partners in support industry products

A teleconference took place on July 7 with the aim of supporting local businesses seek partners to co-operate in outsourcing, producing, and exporting local support industry products to the Japanese market amid the... Read more »

SJC gold price climbs to new peak of VND50.35 million per tael

The domestic SJC gold price surpassed the VND50 million per tael mark for the first time on July 7, reaching its highest level since August 2011 in the process. Read more »

First half of year hit by plunging rubber exports

Vietnam exported 456,000 tonnes of rubber during the first half of the year worth a total of US$606 million, down 25.7% in volume and 27.9% in value compared to the same period last... Read more »

Vietnam puts illegal transshipment to US under control

Vietnam customs have identified a list of foreign goods forging Vietnamese origin that contributed to a surge in exports to the US, including bicycles, solar batteries, seafood, and wooden products. Read more »

Firms in HCM City shift focus towards ASEAN market

With local exports to both the United States and European markets facing plenty of difficulties as a result of the novel coronavirus (COVID-19) epidemic, many businesses based in Ho Chi Minh City are... Read more »

Exports: Expecting to “turn the table” thanks to EVFTA

Suffering from the serious impact of the Covid-19 pandemic, in the first half of this year, export goods of Vietnam recorded a serious decline in all key commodities. This situation would change in... Read more »

It is necessary to implement drastic measures to ensure the goal of disbursement of foreign loans

VCN  - This year is the final year of the medium-term public investment plan period 2016-2020. The remaining tasks for the entire period are set for this year. However, the Covid-19 pandemic affected production... Read more »

How does EVFTA impact on State revenue?

  VCN- With the participation in international economic integrations and the EVFTA, opportunities and challenges will be shared equally among all parties. Commitments on import and export tax under the EVFTA will have a... Read more »

Con Dao struggling to deal with waste disposal headache

Authorities in Con Dao District in the southern province of Ba Ria-Vung Tau are facing overloaded waste disposal at a local dumping site. Nhat dumping site’s condition has worsened as water from it... Read more »