Securities firms set ambitious business targets

This year is forecast to be a special one for Vietnam’s stock market. As such, many securities firms are setting high growth targets, with profit plans at their top ever levels aligned with market expectations.

The largest securities company by scale, SSI, is targeting $387.8 million in consolidated revenue and more than $170 million in pre-tax profit, up 11 per cent and 20 per cent on-year, respectively.

Last year, the company eyed its largest-ever profit, counting $138 million in pre-tax earnings.

SSI stated that 2025 presents many opportunities for Vietnam’s stock market.

A Ministry of Finance circular, which took effect from late 2024, has helped remove barriers for foreign investors, laying a crucial foundation for FTSE Russell to consider upgrading Vietnam’s stock market to emerging market status in the forthcoming September review.

Circular 68 amends and supplements a number of articles prescribing securities transactions, the clearing and payment of securities transactions, operation of securities companies, and information disclosure on the stock market.

Along with that, the State Securities Commission is aiming to put the KRX trading system into operation in the first half of this year, a catalyst expected to bring both quantitative and qualitative changes to the local stock market.

The KRX system, developed by Korea Exchange, promises diverse innovative features, including the ability to facilitate odd-lot trading and same-day settlement.

The stock market is also expected to benefit from new provisions in the amended Securities Law, which encourages capital raising activities by listed firms, making the market more vibrant.

SSI, however, also mentioned risks, particularly the net selling pressure from foreign investors.

Foreign investors net sold more than $3.6 billion on Vietnam’s stock market last year, and this trend has lingered in the early months of 2025.

Many other securities companies have also set strong growth targets for 2025, aiming to surpass previous profit peaks.

So far, six securities firms have set profit targets exceeding VND1 trillion ($40 million), namely SSI, VPS, SHS, VCI, ACBS, and MBS.

Among this group, diverse firms are setting quite high profit growth targets for 2025. For instance, ACBS is aiming for a nearly 60 per cent jump in profit, reaching $54 million, while MBS is planning a 39 per cent increase, targeting $52 million.

If achieved, this will be the first year ACBS and MBS have entered the group of securities firms with profits surpassing VND1 trillion.

The profit targets of $64 million set by SHS and $56.8 million set by VCI both represent an on-year increase of around 30 per cent.

TCBS, VNDirect, and HSC – three securities firms with profits exceeding VND1 trillion in 2024 – have not yet announced their revenue and profit plans for this year.

However, with the overall growth expectations of the industry, the number of securities firms with profits exceeding VND1 trillion is expected to rise significantly compared to last year.

In the smaller-scale group, many companies also have ambitious plans.

For instance, Kafi is aiming for a pre-tax profit of $32 million in 2025, soaring 211 per cent on-year.

Maybank is targeting a 55 hike in profit growth, reaching $16.8 million, while DNSE’s shareholders have approved a profit plan approximating $10.5 million, up 44 per cent compared to the previous year.

Along with positive revenue and profit growth targets, securities companies are developing strategies to increase capital and raise funds to expand their operations, preparing for a 2025 full of opportunities but also challenges.

For investors, closely monitoring these plans will be key to identifying trends and making effective decisions.

A new goal for export turnover has been set for exports in 2025 amid major pressures, including weak links between Vietnamese and foreign businesses.

Ongoing economic recovery continues to serve as a driving force, enabling businesses from various sectors to accelerate growth, with many firms are setting business plans with double-digit growth targets.

Eximbank’s pre-tax profit reached a record $167.5 million in 2024 with exceptional growth indicators despite the financial and banking sector facing numerous challenges.