SUSTAINABLE ECONOMIC GROWTH 

 

GRI 100: UNIVERSAL STANDARDS
GRI 201: ECONOMIC PERFORMANCE 
GRI 203: INDIRECT ECONOMIC IMPACTS
 


Strong Business Performance

 

2018 witnessed strong volatility of the Vietnam Stock Market and many adverse impacts from the international market. Securities companies in general and SSI in particular were faced with multiple difficulties in business operations. However, with the position of the leading securities company with a sustainable development strategy, SSI still recorded effective business results, outperforming the business plan’s targets approved by the General Meeting of Shareholders, growing all aspects of market share, customer base, services and products, branch network and human resources. The company recorded a total operating revenue and other consolidated income in 2018 of VND 3,997 billion, growing by 30.9% YoY and exceeding the business plan by 17.2%. Pre-tax accounting profit reached over VND 1,623 billion, growing by 15.5% YoY and also exceeding the business plan. Total assets grew strongly to reach VND 23,825.6 billion and owner's equity reached VND 9,155.6 billion. SSI has a healthy financial structure with high bank loans being backed by a large deposit balance as a reciprocal source. Operating costs are strictly controlled within the budget. 

 

 

 

Regard to Securities Services, 2018 is the 5th year in a row SSI topped the brokerage market share for the whole year on HOSE and HNX, respectively at 18.7% and 11.89%. Customer base grew strongly to over 153 thousand accounts - an increase of 20% compared to the previous year. The revenues in 2018 from Securities Service reached over VND 1,893.6 billion or an increase of 42.6%. 


Investment Banking focused on advisory on share issuance for businesses, seeking for investors, providing high quality advisory and active support for enterprises. SSI has secured many landmark deals in the market in 2018. Investment Banking’s results also exceeded the business targets, reaching VND 125 billion. 


Treasury plays a major role in effective management of the Company’s capital, assisting customers to safeguard their business capital, making payment in a flexible and prompt manner, actively expanding cooperating relationships with commercial banks with strong brand names, pioneering in the launch of new products and services, striving to coordinate with Securities Services to expand margin lending activities to serve retail clients. In 2018, Treasury activities recorded a revenue of VND 759.1 billion, marking a 55% increase compared to 2017. 


Principal Investment experienced a challenging year due to adverse developments of the market. However, the Company always pursues the investment strategy in the primary economic sector, which has the potential for sustainable development and timely divestment from mature sectors or in other words, no longer have potential to grow to make funds available for investment opportunities in 2019. The total revenue from Principal Investment mounted to VND 1,093 billion in 2018


SSI Asset Management Ltd. (SSIAM) is responsible for fund management, actively seeking investors, further diversifying product distribution channels, developing a number of funds to raise capital from foreign institutional investors and launching products for retail investors with large investment needs. At the end of 2018, SSIAM had total assets of VND 5,573 billion under its management, revenue from fund and portfolio management in 2018 reached VND 65.5 billion. 

 

 

 

Contribution to the State Budget 


Since its establishment, SSI has always fulfilled its tax obligations and fully paid payable amounts to the State budget, with payment value tending to gradually increase over time. In recent years, the company has often been one of the enterprises to contribute the largest corporate income tax amount in Vietnam and is now the leading company in the securities industry. 

 

 
Success in connecting capital to investment opportunities
 
With the mission of “Connecting Capital to Opportunities”, SSI always manages to assist businesses in capital mobilization through the stock markets, contributing to the formation of a channel to direct and distribute capital to the economy in the long term under market mechanism, efficient resource development, and promotion of economic development. In 2018, SSI obtained success in providing advisory services in a series of valuable deals traded in different ways, even a number of classics in Vietnam and the region such as Shares offering of Vinhomes Joint Stock Company (VHM - HOSE) to foreign investors for a total sale revenue of over USD 1.35 billion; SCIC’s divestment from Binh Minh Plastics Joint Stock Company (BMP - HOSE) with a total transaction value of USD 103 million; Private offering of shares of Tien Phong Commercial Joint Stock Bank (TPB - HOSE), with a total value of over USD 94 million; Private offering of shares of PAN Group Company (PAN - HOSE) with a total value of USD 35 million; or advisory service on transaction structure and the agents in charge of public offering of shares of Hau Giang Pharmaceutical Joint Stock Company (DHG - HOSE) for Taisho Drug Manufacturing Joint Stock Company (Japan) with a total transaction value of USD 48 million. 
 
Active participation in market development 
 
As the leading securities company that develops in parallel with Vietnam Stock Market, SSI not only strictly and fully complies with the State’s regulations on business activities and those relevant regulations, but also stays active in contributing initiatives in development of legal normative documents on the stock market, improving the feasibility and quality of legal documents of the state agencies as well as actively participates in development of new products for release to the market. 
 
In 2018, the Company provided its feedback to many draft Laws, Decrees, Circulars and guiding regulations to support the introduction of clearer regulations and guidelines for activities on the stock market. Specifically: 
 
Amended Law on Securities;
 
Law on Amendment and Supplementation of Law on Enterprises and Law on Investment;
 
Decree 163/2018/ND-CP on corporate bonds;
 
A Circular to replace Circular No. 241/2016/TT-BTC dated November 11, 2016 regulating service prices in securities industry applicable to the Stock Exchanges and Vietnam Securities Depository and Circular No. 242/2016/TT-BTC dated November 11, 2016 regulating service prices in securities industry applicable to securities business organizations and commercial banks participating in Vietnam’s securities market;
 
Circular 32/2016/TT-NHNN on amendment and supplementation of a number of articles of Circular 23/2014/TT-NHNN dated August 19, 2014 by the State Bank of Vietnam guiding the opening and use of payment accounts at payment service providers;
 
Draft Scheme for Securities and Insurance Market Development for the period of 2017-2020;
 
SSI has been an active member of the Vietnam Association of Securities Business, with its representatives to join in the Executive Board of the Association, as well as a core member at affiliated clubs such as Legal Club, Investment Advisory Club, Training Club. Through its activities in the Association, SSI has actively contributed ideas to support development of many legal documents and policies of the State. The representative of the Company was also appointed by the Association to be a member of Team of Editors for the amendment of the Law on Securities, and at the same time participated in appraisal meetings for draft legal documents on securities organized by the Ministry of Justice. The company is also a member of Vietnam Bond Market Association, Vietnam Business Forum and Vietnam Fund Management Club.