Broker VNDirect fails to hold AGM for first time, fulfills half of 2024 net profit goal

Leading Vietnamese broker VNDirect Securities was unable to hold its AGM for the first time after failing to meet its quorum this week.

Only 567 shareholders attended the meeting on Monday, representing a turnout that was far below the prescribed level of 50%. The firm will reschedule its 2024 AGM for June 28, VNDirect chairwoman Pham Minh Huong told shareholders after the failed meeting.

Responding to shareholders’ queries about information security, Huong mentioned that VNDirect, which faced a cyberattack in March, has ramped up investment in its tech infrastructure, features, and the pace of order-matching.

In addition, the firm, listed on the Ho Chi Minh Stock Exchange as VND, plans to develop an investment service ecosystem to assist investors with asset risk management.

Regarding the broker’s business performance, in the first half of this year, VND is estimated to have achieved 50% of its 2024 net profit target set at VND2.02 trillion ($79.37 million), its CEO Nguyen Vu Long stated.

This year, the company is aiming for VND1.36 trillion ($53.63 million) in revenue from margin lending, up 18% year-on-year. Of the sum, revenue from the capital market is projected to decline by 39% to VND1.89 trillion ($74.54 million), and revenue from brokerage services is set to slump 17% to VND720 billion ($28.29 million).

All goals were set based on the forecast that the VN-Index, Vietnam’s benchmark bourse, will hit 1,320-1,350 points by end-2024.

It also plans to issue 286.6 million shares to a maximum of 10 investors via a rights offering, aiming to mobilize capital for service expansion.

VNDirect is due to issue 30 million shares under the employee stock ownership plan at a price of VND10,000 ($0.39) apiece, along with 15 million bonus shares to its employees, in 2024-2026. The firm also plans a 2023 cash dividend payout of 5%, or VND500 a share, in 2024.

Currently, VNDirect is issuing 304.5 million shares, including 60.8 million shares under a 2022 stock dividend of 5% and 243.5 million shares via a private placement. After the issuance, VNDirect’s charter capital will hike to VND15.22 trillion ($598.15 million) from VND12.17 trillion ($478.51 million).

Sources told The Investor that VNDirect’s net profit is estimated at VND1.01 trillion ($39.69 million) in the first half of the year, up 79% year-on-year.