SSI - Strong earnings growth but brokerage market share declines - Earnings Flash
  • 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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