RongViet Securities meet 75% of profit target in H1


(VnExpress International) Positive business results in the first half helped RongViet Securities erase accumulated losses and focus more on sustainable development.

RongViet Securities has released its semi-annual consolidated financial statements for 2023 with positive results thanks to strong operations as well as taking advantage of the market's recovery.


Photo courtesy of RongViet

Total consolidated revenue of RongViet Securities in the first six months of 2023 reached VND352.1 billion.

The recovery of the market helped the company's investment portfolio revert to VND186.3 billion from the depreciated valuation expense, thereby reducing the total cost to VND146.8 billion.

As a result, RongViet recorded a consolidated pre-tax profit of VND205.3 billion and a net profit of VND160 billion, completing 75.8% and 73.9% of the full-year plan, respectively.

As of June 30, the total assets on the consolidated financial statements reached more than VND4.481 trillion, and equity reached VND2.248 trillion, officially erasing all accumulated losses at the end of 2022.

VDS stock of RongViet has been taken out of warning status by the HOSE since Aug. 17.

RongViet's earnings per share (EPS) in the first six months of 2023 reached VND761.

Return on assets and return on equity in the first six months reached 3.7% and 7.5%, respectively, much higher than the industry average.

With these results, the VDS stock price has doubled compared to the beginning of the year, bringing the market capitalization of RongViet to more than VND3.2 trillion.

According to RongViet, with the direction from the beginning of the year to adapt to the new age and advance at a solid pace, it has taken firm steps to be more confident in H2.

With the stock market having been more positive recently, the company expects to soon exceed the target of VND270.8 billion in pre-tax profit (consolidated) as approved by the General Meeting of Shareholders.

RongViet's main goal in H2 is to continue stabilizing and developing staff, promoting development and client services based on maximizing the advantages of the financial-investment products and services, using RongViet technology to bring the best investment efficiency and client satisfaction.

Although investment banking activities are still facing many difficulties due to the general market situation, the company's representative said that they would strive to accompany clients to accelerate the progress of M&A projects, trying to close key deals in 2023.

At the same time, it will closely and regularly coordinate to promptly support clients in solving difficulties and problems in corporate financial consulting and capital mobilization activities.

As the bond market is still facing many difficulties and losing investor confidence, RongViet is one of the few companies that can fully meet the new regulations on private bond issuance as well as affirm the trust of investors to continue to successfully issue new bonds from Q4 of 2022 until now.

The company said that it would ensure full payment of bond principal and interest upon maturity and fully comply with legal regulations on information disclosure, bond offerings to investors, and periodic reporting obligations for state management agencies.
In terms of the ratio of total debt to equity as of June 30, RongViet maintained a very safe ratio (by a factor of one) and was much lower than the maximum of five times stipulated by the Ministry of Finance.

After successfully implementing the issuance in March with a total actual issuance value of VND311.1 billion, in June, the company continued to offer the second batch of bonds of the year worth VND700 billion.

Thanks to the trust and support of clients, domestic and foreign investors, and the reputation that has been affirmed for many years, the progress of the second batch of bonds of RongViet is positive and has been completed at more than 86% of the expected issuance value in less than a month.

With the vision of becoming one of the leading, modern, and most effective financial institutions in Vietnam, RongViet has built and started implementing a comprehensive digital transformation strategy for 2021, with four pillars: optimize and build excellent operating systems; enhance client experiences; develop new platforms and business models; and build strong IT infrastructure and security.

Over the past few years, RongViet has continuously improved the financial-investment ecosystem and launched many digital platforms to bring new values to investors.

Prominent products and services include eduDragon, an online stock investment learning system; smartDragon, an investment analysis platform; and iBot, a virtual investment assistant on Telegram.

In early 2023, RongViet launched the brand new iDragon Pro trading app, bringing superior securities trading experiences to clients.
At the end of July 2023, the U.K.-based Global Banking & Finance Review honored iDragon Pro as the Best Trading App Vietnam 2023.
Also in July 2023, it officially put into operation the Data Warehouse, a comprehensive data platform, after more than 11 months of efforts by the company's staff with the consultancy of experts from CMC Group and IBM Vietnam.

The project is an important milestone that helps to improve the efficiency of management and use of data at RongViet as a foundation to continue to successfully implement digital transformation projects such as human resource management, customer relationship management, and a comprehensive reporting system.

With great advances in the application of technology to perfect the ecosystem of financial-investing products and services in many utilities throughout the investment journey of clients, the Vietnam Wealth Advisors Summit 2023 named RongViet as the Digitalization Product of the Year and honored its contribution to financial services development.


RongViet representative receives the honor as the Digitalization Production of the Year. Photo courtesy of RongViet

With the motto Creating a Prosperous Future, RongViet aspires to bring prosperity not only to clients, partners, and shareholders but also to employees, the community, and society.

This is evidenced by the fact that RongViet was honored as one of the"Best Companies to Work for in Asia" for two consecutive years in 2022 and 2023 at the HR Asia Awards. This award recognizes efforts to build a humane, dynamic, and creative working environment where members share culture, vision, and career development.

Besides building effective business activities, the company also wishes to share its development results with the community and society through meaningful and practical programs and activities.

Rong Viet has maintained annual charity programs for the past 12 years, such as Accompanying to School: Realizing Dreams to Support Poor Students and Sharing Love to Help Difficult Circumstances.

To contribute to building and developing Vietnam's financial market and foster the young generation, RongViet plans to launch RongViet Invest, a knowledge and real-world investment competition for university students nationwide, in Q3.


RongViet working with UEH University to organize RongViet Invest 20223 – a real-world stock investment contest for nationwide university students. Photo courtesy of RongViet

The goal of the program is to become an annual playground where students across the country can learn, direct their careers, and experience being a real investor in the stock market.

Thereby, it aspires to contribute to building a new generation of investors with knowledge, experience, and bravery to join hands in building a sustainable Vietnamese stock market.

(According to VnExpress International)