SSI Securities Corporation, listed on the Ho Chi Minh Stock Exchange under the ticker SSI, offers a wide range of financial products and services such as stock brokerage, margin lending, corporate finance advisory and portfolio management.
In the first half of 2024, SSI’s revenue and pre-tax profit surged by 39 percent and 56 percent respectively compared to the previous year. This surge was in line with the VN-Index recording a 10.2 percent increase from the beginning of 2024 to the end of June. This was driven by an 11.5 percent increase in first-quarter profits among HoSE-listed companies and a recovery in export and manufacturing activities.
Revenue from securities and margin lending services also saw a significant uptick resulting in a pre-tax profit margin of 47 percent in the second quarter of 2024 compared to 30 percent at the end of 2023. Additionally, the company’s proprietary trading activities’ profits increased by 23 percent year-over-year.
Despite positive business results in the second quarter of 2024, SSI shares experienced an 18 percent decline from April 1 to September 16. This downturn was attributed in part to broader market trends with the real estate sector underperforming and significant net selling by foreign investors.
Furthermore, SSI’s current reliance on proprietary trading, which accounted for over 43 percent of gross profit in the first half, and declining brokerage market share due to the expansion of rival companies, has also contributed to the share price’s decline.
The market share of SSI was 9.31 percent at the end of the second quarter, down from 10.44 percent at the end of 2023.
Disclosure: The author does not have any financial interest in SSI stock.