SSI released consolidated results for 2021 with net profit totaling VND2.7tn (USD117mn; +115% YoY), which completed 112% our FY2021 forecast. We attribute the strong increase in the bottom line to (1) a 70% YoY increase in operating income — led by a surge in margin lending and brokerage revenue along with higher gains on financial assets at fair value through profit and loss (FVTPL) — that outweighed a 66% YoY increase in operating expenses, (2) 64% YoY increase in financial income that was mainly derived from SSI’s divestment from The PAN Group (PAN) in Q4 2021 and (3) 50-bp YoY decrease in the cost of borrowing that we believe was driven by a lower interest rate environment. 

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