Leading Vietnamese broker SSI pays cash dividends for 10 consecutive years

Saigon Securities (SSI), a major broker in Vietnam, plans a cash dividend payout of 10%, equivalent to VND1.97 trillion ($77 million), for 2024, maintaining this policy consistently over the last 10 years.

According to the documents to be presented at its upcoming 2025 AGM, the company, listed on the Ho Chi Minh Stock Exchange (HoSE) as SSI, will not issue share dividends as it did in 2023. Instead, it plans to offer up to 10 million shares through its Employee Stock Option (ESO) program and conduct a private placement.

In the 2023 AGM, SSI proposed a private placement of 104 million shares, but the plan was not executed. The company will continue with this strategy and the offering period will be extended to 2025-2026.

The goal is to raise its charter capital from VND19.74 trillion to VND20.79 trillion ($812.9 million). The funds raised will be used for lending, issuance guarantees, or investments in certificates of deposits and other securities.

Record profit target

Regarding business operations, SSI's board of directors targets VND97 trillion ($3.79 billion) in revenue and VND4.25 trillion ($166.2 million) pre-tax profit target for 2025, up 11% and 20% year-on-year, respectively. If achieved, these would be new records for the company.

The targets are based on the assumption that the VN-Index, which represent the Ho Chi Minh Stock Exchange, will fluctuate between 1,450 and 1,500 points, with an average trading value of approximately VND19.5 trillion ($762.5 million) per session.

CEO Nguyen Hong Nam is optimistic about 2025, citing many opportunities for the stock market. Circular 68, effective from late 2024, is expected to ease barriers for foreign investors, laying the foundation for FTSE Russell to consider upgrading Vietnam’s stock market status from "frontier" to "emerging".

The State Securities Commission (SSC) also aims to introduce the new KRX trading system, which is expected to bring both quantitative and qualitative improvements to the market.

The amended Securities Law is expected to stimulate capital-raising activities, making the market more dynamic and attractive, he added.

However, Nam also highlighted ongoing risks, particularly the selling pressure from foreign investors. In 2024, foreign investors net sold VND92 trillion ($3.6 billion), with no signs of the trend slowing down in the early months of 2025.

In addition to its core businesses of brokerage and investment, SSI is actively involved in private equity transactions, IPO advisory, public offerings, and raising debt instruments for both listed and unlisted companies.

SSI is the exclusive distributor for what is expected to be one of the “blockbuster” auctions of the year, held by industrial real estate developer Becamex IDC (HoSE: BCM).

Furthermore, the company is venturing into the rapidly growing field of digital assets as it recognizes the significant potential in blockchain and digital assets. Through the SSI-IMF Fund, the firm has launched SSI Digital, which focuses on developing a technology incubator in areas like artificial intelligence (AI), Fintech, and Web3.

Nam stated that SSI Digital will invest in and support innovative companies, especially in digital technology and blockchain. SSI also plans to collaborate with partners and government agencies to pilot the operation of the digital asset market in Vietnam by 2025, he added.

SSI’s stock closed at VND26,350 ($1.03) per share on Friday.