Smart Invest Securities (AAS): Positive profits as customers return to bond trading

AAS achieved a pre-tax profit of over 259 billion VND, completing more than 50% of its annual plan. Why did the Company achieve such good business results amidst a volatile market?
In the first half of this year, all business segments of AAS experienced good growth. Bond investment continued to be the main contributor to business results with a total transaction value of approximately 35,700 billion VND, an increase of 57.5% compared to the same period in 2021.

This strong growth comes from AAS’s internal resources, primarily from capital increase, which helps expand the scale of bond investment and market share.

The application of technology, development of trading software systems, and digital signatures make trading activities more convenient and smarter.

Furthermore, diversifying the bond product portfolio helps increase trading demand and profitability with many bonds from large enterprises and companies in the VN30 index.

We have successfully attracted more individual and institutional clients to participate in bond trading by becoming a market maker. Professional participation in the bond market has led AAS to join the Vietnam Bond Market Association (VBMA).

Many individual investors sold off bonds after the Tan Hoang Minh incident; did this affect AAS’s business operations?

The Tan Hoang Minh incident negatively impacted the bond market, specifically investors’ confidence in the market. At that time, investor sentiment was generally confused, leading to a chain reaction where many investors sold bonds prematurely to retrieve their money, being cautious of potential risks. This move, lasting about 1 month after the incident, negatively affected the market and businesses, including AAS.

However, as of now, investor sentiment has calmed down. When the market has risks, investors will choose a reliable trading venue. AAS has been a market participant for many years and has built a reputation with clients, so AAS has seen clients return to normal trading. Thanks to this, June’s business results grew significantly, and the full-year plan is expected to be achieved.

How do you assess the bond market’s development after the recent slowdown, and what is AAS doing to leverage development opportunities?

The capital demand of businesses is very large, so the bond market, as a medium and long-term capital channel, will inevitably develop. The market, after a period of purification, will be more positive in terms of transparency; at the same time, investors will have a clearer understanding of the risks when participating in the market in the upcoming period. Basically, the bond market remains an attractive investment channel with higher returns than bank deposits, and if one understands where the risks lie to make the right choice, it is also safe.

In the coming period, new policies and decrees issued by the Government will help the market develop to a new level.

Recognizing the increasing demand for bond trading from investors, which means a very large number of existing and potential clients, AAS has been expanding its branches and recruiting nationwide to broaden its coverage.

AAS focuses on the quality of consulting by providing high-value information about the market and businesses so that investors can make correct buy/sell decisions. We continue to improve and expand technology applications, putting into operation a new, convenient, and easier-to-trade core bond solution system.

Is AAS’s capital increase issuance plan affected by the stock market downturn?

At this very moment, AAS is already capable of absorbing new capital. Therefore, we remain steadfast in executing our upcoming capital increase plan with the goal of anticipating market trends and enhancing bond trading capacity.

The stock market is showing many signs of recovery after the recent prolonged downturn, and domestic macroeconomic factors are also very strong, contributing to stabilizing market sentiment.

The stock market and bond market have great potential for development, with new accounts accounting for about 5% of the population. Therefore, to move quickly and catch up with competitors, AAS’s capital increase to enhance competitiveness cannot be delayed.”

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