• We attended SSI’s AGM in HCMC on April 25. The main agenda of the meeting was to (1) review 2023 results, (2) approve 2024 business guidance, (3) approve profit distribution plans of paying a 10% cash dividend, (4) approve continuing capital raising plans, and (5) elect two members for the Board of Directors’ terms in 2024-2029.
• The Q&A session focused on SSI’s (1) conservative 2024 business plan, (2) long-term investment and development plans, (3) progress of the private placement, and (4) technology capacity when KRX goes live.
• The AGM set consolidated revenue guidance of VND8,112bn (+11% YoY) vs our full-year forecast of VND8,433bn (+18% YoY) and consolidated profit before tax (PBT) of VND3,398bn (+19% YoY) vs our full-year forecast of VND3,811n (+34% YoY). 
• Q1 2024 consolidated revenue of SSI was VND2,022bn (flat QoQ & +34% YoY) and PBT was VND943bn (+46% QoQ & +53% YoY). These numbers are in line with our projections and complete 24% and 25% of our respective full-year forecasts.
• SSI proposed a 2023 cash dividend of VND1,000/share (equivalent to a 2.8% dividend yield).
• Shareholders re-elected Mr. Nguyen Hong Nam and Mr. Pham Viet Muon as the BOD member and independent BOD member, respectively, of SSI for the term 2024-2029.
• We currently have a MARKET PERFORM rating for SSI with a target price of VND37,300/share.

Wealth management is the long-term development strategy for SSI in the next 10 years. SSI sees this as a market high potential due to strong growth in the middle to wealthy class and the increase in demand for wealth management services in all customer segments. Currently, the SSI Asset Management and Investment Entrustment Service, which is for customers with assets higher than VND2bn, has been growing well while the wealth management service for mass clients (named iFollow) has just been launched on SSI’s trading app. iFollow allows all customers to replicate experts’ portfolios. 

We believe these developments will have a potential positive impact on SSI’s fees revenue when the brokerage commission fees are under the pressure of zero-fee competition. The fees in the IFollow product include (1) 0.15% transaction fees and (2) 20% of the investment profits if they exceed 10% per year.

Continue to implement capital raising plan that was approved at the 2023 AGM. SSI has just finished issuing 10 million shares through its ESOP on April 16, 2024, and submitted to SSC the rights issuance plan of 151 million shares (100:10) to current shareholders at a price of VND15,000/share. Regarding the private issuance plan of 104 million shares and a 20% stock dividend, it will be implemented in the 2024-2025 period.

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