- 2024-10-30T00:00:00
- Company Research
SSI released its consolidated results for 9M 2024 with PBT of VND3.0tn (USD120mn; +35% YoY), which fulfills 83% of our FY2024 consolidated earnings forecast. 9M 2024 operating income (defined to include gains but not losses on the principal book) increased 23.4% YoY to VND6.3tn (USD258mn), completing 78% of our full-year consolidated forecast. Overall, we anticipate potential upward revisions to our earnings forecast for SSI.
- 9M 2024 gains from FVTPL continued to strong at +36.7% YoY. This income accounted for 47% of SSI’s total revenue, and interest income from CDs and coupons from bonds accounted for 58% of SSI’s FVTPL income. Given the FVTPL balance decrease of 7% QoQ, We expect that SSI’s gains from bonds and CDs will weaken in Q4 2024.
- 9M 2024 brokerage revenue increased 19.6% YoY following a 21.3% YoY increase in 9M 2024 average daily trading value (ADTV) to USD895mn from USD737mn in 9M 2023. This completes 72% of our full-year forecast. On a QoQ basis, Q3 2024 brokerage revenue decreased by 39.3% QoQ due to (1) weak ADTV in Q3 2024 vs Q2 2024, and (2) SSI’s brokerage market share decreased to 8.2% in Q3 2024 from 8.8% in Q2 2024 across the three trading venues, per our estimation.
- SSI’s Q3 2024 margin lending balance was flat QoQ at VND19.5tn despite the lower ADTV. 9M 2024 margin lending revenue was VND1.5tn (+33.6% YoY), completing 78% of our full-year forecast.
SSI’s consolidated 9M 2024 results
VND bn | 9M 2023 | 9M 2024 | YoY | Q3 2023 | Q3 2024 | YoY |
Operating income | 5,111 | 6,308 | 23.4% | 1,941 | 2,028 | 4.5% |
Gains from FVTPL | 2,160 | 2,952 | 36.7% | 765 | 997 | 30.4% |
Gains from HTM | 359 | 258 | -28.3% | 113 | 61 | -45.8% |
Gains from AFS | 5 | 7.8 | 58.3% | 0.8 | 4.4 | 423.7% |
Margin lending revenue | 1,129 | 1,509 | 33.6% | 431 | 549 | 27.5% |
Brokerage revenue | 1,128 | 1,348 | 19.6% | 535 | 340 | -36.5% |
Commission rate | 0.18% | 0.19% | +1 bp | 0.18% | 0.17% | -0.9% |
IB revenue | 66 | 48 | -27.8% | 31 | 9 | -70.2% |
Others | 263 | 186 | -29.4% | 66 | 67 | 2.2% |
Operating expenses | 1,508 | 2,083 | 38.1% | 653 | 636 | -2.6% |
Loss from FVTPL | 271 | 797 | 194.5% | 162 | 242 | 49.9% |
Expenses for brokerage | 959 | 999 | 4.2% | 394 | 294 | -25.3% |
Others | 279 | 286 | 2.7% | 97 | 99 | 2.5% |
Gross operating profit | 3,602 | 4,226 | 17.3% | 1,289 | 1,392 | 8.1% |
Financial income | 76 | 135 | 78.8% | 30 | 40 | 35.0% |
Gains from affiliates/ divestments | 50 | 85 | 71.6% | 18 | 22 | 17.3% |
Financial expenses | 1,227 | 1,164 | -5.1% | 357 | 385 | 7.8% |
Borrowing costs | 1,177 | 1,100 | -6.5% | 357 | 366 | 2.4% |
G&A expenses | 247 | 209 | -15.5% | 81 | 61 | -24.6% |
Net other income | 1 | 1 | -3.3% | 0 | 0 | 117.8% |
PBT | 2,204 | 2,989 | 35.6% | 880 | 987 | 12.1% |
NPAT | 1,780 | 2,407 | 35.2% | 710 | 794 | 11.8% |
Margin lending book | 15,269 | 19,499 | 27.7% | 15,269 | 19,499 | 27.7% |
GPM % | 71% | 67% | -3.5 ppts | 66% | 69% | 2.3 ppts |
NPM % | 35% | 38% | 3.3 ppts | 37% | 39% | 2.6 ppt |
Source: SSI, Vietcap (units are in VND bn unless otherwise stated)
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