Vietcap Securities Joint Stock Company · HOSE:VCI
Vietcap Securities Joint Stock — Vietcap Securities JSC — Investor Presentation (February 2024)
25 slides from Vietcap Securities Joint Stock's investor presentation, February 2024
Slide 1: Corporate Presentation – February 2024
Corporate Presentation – February 2024
Slide 2: Disclaimer
Disclaimer This company profile (“Company Profile”) is provided by Vietcap Securities JSC (“Vietcap”, “VCI”, or the “Company”). It is being delivered to a limited number of parties who may be interested in the Company. The sole purpose of this Company Profile is to assist the recipient in deciding w
Slide 3: Company Profile
Company Profile Vietcap~
Slide 4: Company overview
Company overview • Founded in 2007, Vietcap (HSX: VCI) is one of the fastest Balanced revenue and profit structure growing securities companies in Vietnam, with a leading investment bank and a top brokerage house. Revenue by segment • We has been the advisor to almost all landmark IPO, M&A, and 2022
Slide 5: Our competitive advantages
Our competitive advantages 1 Full-suite services with diversified revenue streams supporting a sustainable business model Unrivaled understanding of Vietnam’s market – the 1st port of call for local 2 and foreign companies looking to transact in Vietnam Beside the unique franchise strengths, Vietcap
Slide 6: Seasoned and visionary management team
Seasoned and visionary management team Nguyen Thanh Phuong, Founder and To Hai, MBA User Innovation Research Chairperson Founder, Member of the Vietnamese; Chairperson Board, CEO Nguyen Thanh Tung, PhD Alastair Macdonald, of Viet Capital Asset Vietnamese; CEO and Chief of Technology MA, CFA Manageme
Slide 7: Vietcap offers full-suite securities-related services with diverse revenue streams
Vietcap offers full-suite securities-related services with diverse revenue streams Support departments Front-office Growth initiatives Investment Banking Bond Brokerage Department Department (“IBD”) Established in 2021 Market leader in Vietnam Actively expanding to capture DCM Research Department Ad
Slide 8: Investment Banking (IB) – Market leader and trusted advisors
Investment Banking (IB) – Market leader and trusted advisors to many of the largest companies in Vietnam #1 Investment Bank Strong deal flow and diverse clientele in various industries • Vietcap’s IB has local expertise coupled with international Selected transactions from 2020 to 2023 standards & g
Slide 9: Brokerage – Strong foothold in the top market share
Brokerage – Strong foothold in the top market share Institutional Sales and Trading (IST) Local Brokerage (LB) • Tech driven trading, integrated algorithms, DMA, and high • >220k retail clients and the number of accounts is frequency trading. growing. • Best corporate access with Vietnam's largest a
Slide 10: Margin lending – Outstanding margin lending efficiency
Margin lending – Outstanding margin lending efficiency Margin revenue / Total debt Margin balance / Total equity 30% 250% 25% 200% 20% 150% 15% 100% 10% 50% 5% 0% 0% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 SSI HSC VPS VND VCI SSI HSC VPS VND VCI Source: Vietcap compilat
Slide 11: Investment – Prioritize long-term investments in private businesses
Investment – Prioritize long-term investments in private businesses with high growth potential Focus sector Consumer Retail Financial Technology • Vietcap does not invest for short-term gains but focuses on investing in private companies long before listing and then assisting them to develop value.
Slide 12: Investment – Pursuing a conservative accounting policy
Investment – Pursuing a conservative accounting policy Profit before tax (PBT) Vietcap’s differences in asset revaluation comparison in 2023 (recorded under Equity) VND bn VND bn 3,000 3,000 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1,000 500 500 0 0 SSI HSC VPS VND VCI 2017 2018 2019 2020 2021 2022
Slide 13: Key financials
Key financials Cost to income ratio Capital adequacy ratio 44.3% 43.0% 596% 35.8% 521% 534% 28.8% 26.5% 30.0% 30.2% 408% 400% 415% 434% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Financial assets breakdown (VNDbn) Less than 1% 1,749 prop trading activity in 6,604 brokerage
Slide 14: Putting focus on technology and product offerings
Putting focus on technology and product offerings Technology Products & Salesforce Expansion • New platforms to facilitate the • Explore new sales channels (e.g. issuance and trading of various active accounts) and products to reach creating new touch points product lines: bonds, derivatives, with c
Slide 15: 2023 in review
2023 in review Vietcap~
Slide 16: Market liquidity continued to improve throughout 2023
Market liquidity continued to improve throughout 2023 Average daily trading value (USD mn) Foreign participation in overall market (%) 1,156 15.2% 1,004 14.2% 862 12.8% 12.9% 750 11.3% 11.3% 681 482 259 280 319 7.7% 7.4% 7.8% 183 207 7.0% 6.5% 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 2016 2017
Slide 17: Key events in 2022 – 2023
Key events in 2022 – 2023 1650 VN-Index (absolute point) Major escalation in The SBV directed Russia-Ukraine Chairman and guided conflict of FLC and commercial banks 1550 Tan Hoang to implement the Minh were VND120tn (USD5.1bn) social US President arrested housing package visits Hanoi, 1450 The VND
Slide 18: Vietcap’s 2023 results
Vietcap’s 2023 results Net Revenue Profit before tax EPS 2023 VND2,496bn 2023 VND571bn 2023 VND1,125 (USD101.9mn;-22 YoY) (USD23.3mn; -46% YoY) (-44% YoY) Highlights 2023 revenue fulfilled 2023 profit before tax (PBT) fulfilled 77% of our 2023 guidance 57% of our 2023 guidance (VND3,245bn/USD132.4mn
Slide 19: Vietcap continues building track record of solid financial performance (1)
Vietcap continues building track record of solid financial performance (1) Vietcap’s net income and EPS (2014-2023) Vietcap’s ROE (2014-2023) 4,000 1,499 1,600 34.5% 33.4% 3,500 1,400 29.6% 28.5% 3,000 1,200 26.9% 869 2,500 1,000 21.5% 823 769 19.9% 19.7% 2,000 693 800 16.8% 655 1,500 493 600 333 8.
Slide 20: Vietcap continues building track record of solid financial performance (2)
Vietcap continues building track record of solid financial performance (2) ROE PBT per employee (net of differences) (VND bn) 40% 7.0 35% 6.0 30% 5.0 25% 4.0 20% 15% 3.0 10% 2.0 5% 1.0 0% 0.0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 SSI HSC VPS VND VCI SSI HSC
Slide 21: 2023 business segment update
2023 business segment update
Slide 22: Contribution from investment support 2023 result
Contribution from investment support 2023 result Balanced revenue and profit structure Revenue by segment 2022 2023 Growth 2022 2023 11% 11% YoY 8% 9% Total 42% revenue 3,192 2,496 -22% (VND bn) 25% 46% PBT 32% 1,060 571 -46% 14% (VND bn) 1% NPAT 869 493 -43% (VND bn) Retail brokerage Institutional
Slide 23: 2023 segment performance
2023 segment performance Brokerage Margin lending 808 791 609 514 192 229 102 153 2022 2023 2022 2023 Revenue Profit before tax Revenue Profit before tax Investment Banking Investment 431 1,344 342 1,156 298 347 35 (32) 2022 2023 2022 2023 Revenue Profit before tax Revenue Profit before tax Source:
Slide 24: Q&A
Q&A Vietcap~
Slide 25: Contacts
Contacts VIETCAP SECURITIES JSC. Bitexco Financial Tower, 15 Floor, 2 Hai Trieu Street, Dist. 1, HCMC., Vietnam T: 028 3 914 3588 | F: 028 3 914 3209 E: info@vcsc.com.vn W: www.vcsc.com.vn For Investors/Analysts For Media Vy Nguyen (Ms.) Minh Nguyen (Mr.) Senior Manager Manager +84 28 3914 3588, ext
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