Sustainable economic growth

 

Founded in 1999, SSI was one of the first three securities companies in Vietnam, and the only private securities company at the time. After 18 years of development, SSI is now the largest securities company by market cap, with a charter capital of VND5,000.64 billion, much higher than VND6 billion at the time of its establishment. The Company understands that long-term sustainable development strategy can only be realized if it has a solid financial foundation with stable economic growth. The Company thus can increase its contribution to the community and society by adding to the state budget, channeling capital to investment opportunities, and actively participating in the development of the stock market in particular and the financial market in general.


Strong Business Performance
During over 18 years of development, SSI has always striven to achieve positive business results and exceed the plan approved by the Annual General Meeting. Specifically, the company recorded consolidated revenue of VND3,043.2 billion for 2017, up 19.8% YoY and surpassing 44.35% of the revenue target. Consolidated profit before tax reached VND1,405 billion, up 23% YoY and surpassing 32.8% of the full-year target.

 


Revenue from the Securities Services reached VND 1,328.2 billion, up 53% compared to 2016, accounting for 43.5% of the total revenue of the Company. SSI continued to widen the gap from the runner-ups at the number one spot on both exchanges of HOSE and HNX, with the market share of 15.26% - a significant increase compared to the share of 13.04% for 2016. Accordingly, the revenue from Brokerage Services reached VND 779.7 billion for 2017, up 105% YoY. Margin lending and advances to customers balances reached more than VND 5,700 billion at the end of 2017. Revenue from lending activities and receivables (margin lending and advances to investors) made a major contribution to the total revenue of the Securities Services, with a share of 39%, reaching VND 519.65 billion, up 21% YoY.


Principal Investment recorded a revenue of VND 1,060.8 billion, a contribution accounting for 34.7% of SSI’s total revenue. With total 2017 investment value up to VND 3,829 billion (as at 31 December 2017), SSI continued its effective maintenance of value investment strategy, accompanying companies in their endeavors. At the year-end, SSI had 3 associated companies, namely The PAN Group JSC. (PAN - HOSE), Dong Nai Port JSC. (PDN - HOSE), and Vietnam Fumigation JSC. (VFG - HOSE), all of which achieved positive business performance for the year of 2017.


SSI Treasury successfully completed its assigned tasks, increasing the total assets to VND 18,764 billion by the end of 2017 - a record high of 34% YOY; ensuring the highest level of liquidity for the Company and Customers; effectively supporting the capital needs of other Business Units as well as achieving remarkable success in equity trading activities. Treasury recorded its revenue of VND 487.4 billion, accounting for 16% of the total revenue of SSI, up 33.2% YoY.


2017 also witnessed the success of the Investment Banking with a variety of successful advisory large-scale deals worth hundreds of millions of dollars. Revenue from the Investment Banking has been at its highest level in recent years, reaching over VND 111 billion.


SSI Asset Management (SSIAM) Company Ltd. continued to increase the total asset of external clients under SSIAM’s management up to 60.3% compared to last year, reaching VND 6,112 billion. The 2017 revenue of SSIAM rose by 67.9% compared to 2016, reaching VND 54.6 billion.


In 2017, total asset of the company reached VND 18,764.4  billion – a record high of 34% YoY, and owners’ equity was VND 8,616.2 billion.

 


Contribution to the State Budget
Since its establishment, SSI has consistently fulfilled its tax obligations and payables to the State Budget with an increasing trend over time. In recent years, the Company has always been among top 100 Enterprises with highest corporate income tax payment in Vietnam.

 


Notable success in connecting capital into investment opportunities
SSI focused on helping enterprises raise capital in the stock market, contributing to forming a channel for directing and distributing long-term capital according to the market mechanism; stimulating and mobilizing resources, promoting economic development; making the economy more transparent, open, fair and flexible.


In 2017, SSI successfully conducted a series of large-scale advisory deals worth hundreds of millions of dollars. Successful advisory transactions included primary offerings of Vietnam Dairy Products Joint Stock Company (VNM - HOSE) worth USD396 million; secondary share offerings of Vincom Retail Joint Stock Company (VRE - HOSE) worth USD742 million; secondary share offerings of Ho Chi Minh City Development Joint Stock Commercial Bank (HDB - HOSE) worth USD300 million and capital mobilization of USD230 million for Hoa Phat Group JSC (HPG - HOSE), ect.


Active participation in market development
SSI not only complies strictly and fully with the State’s regulations on securities trading and related documents but also actively makes constructive comments during the formulation of legal documents on the stock market, improving their practicality and quality; and proactively develops new products for the market.


In 2017, the Company continued to make comments to a number of draft laws, decrees, circulars and guidelines on the stock market for more effective implementation, including:
•  The Law on Securities (amended);
•  The Decree to replace Decree 90/2011/ND-CP on the issuance of corporate bonds;
•  Regulations on the offering and hedging of covered warrants;
•  Regulations for margin trading;
•  Circular No. 242/2016/TT-BTC on the pricing of securities-related services offered by securities companies and commercial banks in the Vietnam’s securities market;
•  The Decree on electronic securities transactions;
•  Circular 134/2017/TT-BTC on electronic transactions on the stock market;
•  Decision No. 201/QD-UBCK dated March 3, 2014 of the Chairman of the SSC on the method of calculating illegal gains from acts of market manipulation and insider trading.


The Company was also a pioneer in making and putting forward recommendations for the development of the derivatives market; for example, its proposal to the SSC on the supplement to the Circular that allows depositors to trade on margin through general accounts at the securities company to reduce transfer fees charged by payment banks and determines tax amounts per transaction, etc. For covered warrants expected to be introduced to the market in May 2018, the Company was a member of the product development team with HOSE, actively engaging in product development, making comments on tax and accounting regulations for the product. SSI will also be one of the first securities companies to issue covered warrants.


SSI has appointed its representatives to join the Legal Club, and the Investment Advisory Club of the Vietnam Association of Securities Business, in which the Legal Club acts as the focal point and participated in the formulation of securities law. In addition, representatives of the Company are also members of the Market Development Committee & Legal Committee - Vietnam Bond Market Association.