Smart Invest Securities (AAS): Favorable profit as customers return to bond trading

AAS achieved a pre-tax profit of over 259 billion VND, completing more than 50% of the full-year plan. Why did the Company achieve such good business results amidst a volatile market?Mr. Le Manh Cuong, CEO of AAS.In the first half of this year, all business segments of AAS grew well. 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 came from AAS’s internal resources, primarily the capital increase, which helped expand the scale of bond investment and market share.The application of technology, development of trading software systems, and digital signatures made trading activities more convenient and smarter.In addition, diversifying the bond product portfolio helped increase transaction demand and profitability with many bonds from large enterprises and enterprises 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 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, investors’ sentiment was generally confused, leading to a chain reaction where many investors sold bonds prematurely to retrieve money, being cautious of potential risks. This move, lasting about 1 month after the incident, negatively affected the market, impacting businesses, including AAS.But 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, building a reputation with customers, so AAS has seen customers return to normal trading. Thanks to this, June’s business results grew significantly higher, and the full-year plan is expected to be met.How do you assess the bond market’s developments after the recent slowdown, and what is AAS doing to seize development opportunities?The capital demand of enterprises is very large, so the bond market, an essential medium and long-term capital channel, will inevitably develop. The market, after a period of purification, will be more transparent; 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 is still an attractive investment channel with higher returns than bank deposits, and if one understands where the risks are 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 large number of existing and potential customers, AAS has been expanding branches and recruiting nationwide to expand 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 easy-to-trade core bond solution system.Will AAS’s capital increase plan be affected by the decline in the stock market?Right now, AAS is capable of absorbing new capital. Therefore, we remain steadfast in implementing the 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 decline, and domestic macroeconomic factors are also very good, contributing to stabilizing market sentiment.The stock market and bond market have great potential for development when new accounts account for about 5% of the population. Therefore, to move fast and catch up with competitors, AAS’s capital increase to enhance competitiveness cannot be delayed.