Wednesday, June 26 2019

VietNamNews

VNDirect sees post-tax profit up 31% in 2019

Update: April, 19/2019 - 10:17
VNDirect Securities Corporation has targeted post-tax profit to increase a third to VNĐ487 billion (US$21 million) in 2019, reflecting the firm's cautious stance for the year. Photo nhipcaudautu.vn

HÀ NỘI — VNDirect Securities Corporation (VNDS) expects its post-tax profit to grow 31 per cent year on year in 2019 to VNĐ487 billion (US$20.9 million), attendees heard at the firm’s annual shareholder meeting yesterday.

According to Phạm Minh Hương, chairwoman of VNDS board of directors and general director, total revenue is forecast to grow one-tenth to nearly VNĐ1.8 trillion.

In the first quarter of the year, VNDS estimated its post-tax profit was VNĐ102 billion, equal to 21 per cent of the full-year figure.

In 2019, Việt Nam’s economic growth will slow down after having gained strongly in the previous two years, Hương told the meeting.

Total gross domestic product (GDP) growth is estimated at 6.6 per cent, which is in line with the market expectations and lower than the Government’s target of 6.8 per cent.

The Vietnamese đồng will depreciate by 2 per cent this year, dragged by internal factors, while export turnover growth is forecast to decline, she added.

But the 2 per cent depreciation is considered soft, Hương said, as “pressures from international markets will ease because of a more dovish Fed approach (for interest rate hikes).”

Major challenges for the Vietnamese economy in 2019 include the runaway of foreign capital from emerging markets and risky assets on worries about geo-political disruptions and trade tensions, she added.

Meanwhile, cautious management of fiscal policy and stagnant privatisation of State-owned enterprises may worry investors about the economic growth and structure in the long run, Hương said.

Cautious earnings targets were set after the company recorded lower post-tax profit in 2018 due to the market slump since April 9, 2018.

In 2018, VNDS recorded VNĐ1.63 trillion in total revenue, up 30 per cent year on year, and VNĐ373 billion in post-tax profit, down 22 per cent year on year.

At the meeting, the company also planned to pay VNĐ104.3 billion worth of dividend payout. It also wanted to issue 55.11 million shares, worth VNĐ551.1 billion, to current shareholders to increase its capital.

VNDS also planned to sell 66 million shares in a private deal to seek potential shareholders that can provide financial and technical support for the company and increase its capital.

The company is listing 220.4 million shares on the Hồ Chí Minh Stock Exchange under code VND. The company shares ended flat yesterday. — VNS

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