VPS Securities Company provides diverse, high-quality products and services, creating added value for businesses and investors including: stock brokerage, financial services, investment
Introduction
Currently, only about 4% of Vietnam's population holds securities market accounts, prompting the government to encourage greater participation While investing in the stock market involves considerable risks, it also presents significant profit opportunities for investors To mitigate these risks and capitalize on potential gains, our group has enrolled in a "Stock Market" course led by an experienced instructor This initiative has enabled us to explore and invest in a new market, and the following report outlines our journey in stock market investment.
Account opening process
Introduce VPS company
Founded in 2006, VPS Securities Joint Stock Company, originally known as Vietnam Prosperity Joint Stock Commercial Bank Securities Joint Stock Company (VPBS), has evolved into one of the leading securities firms in Vietnam, holding a significant market share as of June 30.
2019, VPS has charter capital of VND 3,500 billion and total assets of VND 10,274 billion
VPS Securities Company provides diverse, high-quality products and services, creating added value for businesses and investors including: stock brokerage, financial services, investment banking services, financial consulting and analysis
As a financial intermediary organization, investment banking activities are the central focus of VPS's development orientation.
VPS provides financial services such as capital arrangement, securities underwriting, mergers and acquisitions (M&A) activities, consulting on determining business value, restructuring capital and debt in each project stage.
Reasons for choosing VPS company to open account
a Brand of VPS securities company
When selecting a securities company, the brand reputation is crucial A well-known securities firm typically offers higher credibility, while lesser-known companies may have lower charter capital and diminished investor trust.
Choosing a brand is crucial in the securities industry, especially when a deposit can exceed the company's charter capital VPS, a well-established securities company with years of experience, previously operated under VPBank, benefiting from its strong financial management capabilities Additionally, VPS offers competitive stock transaction fees, making it a reliable choice for investors.
Investors encounter various fees, with transaction fees and margin loan fees (margin interest rates) being the most significant Additionally, service fees and taxes play a role in the overall cost Therefore, choosing the right securities company for opening an account is crucial for minimizing these expenses.
On December 27, 2018, the Ministry of Finance released Circular No 128, which regulates service prices for securities trading organizations and commercial banks in the Vietnamese stock market This regulation establishes a maximum brokerage fee of 0.5% of the transaction value for buying and selling stocks, fund certificates, and covered warrants, applicable to listed securities and those registered for trading, with no minimum fee enforced.
In the realm of derivative securities services, brokerage fees for futures contracts are capped at 15,000 VND per index futures contract and 25,000 VND per government bond futures contract Notably, some securities firms, including VPS Securities Joint Stock Company and Vietnam Construction Securities Joint Stock Company, have introduced policies to lower transaction fees to just 0.1%.
VPS offers competitive pricing for investors, with a fee of just 0.1% for underlying securities and a minimal cost of 500 to 1000 VND per derivatives contract Additionally, VPS provides an attractive margin interest rate of only 9.8% per year for amounts under 1 billion VND As one of the leading securities companies in Vietnam, VPS stands out for its low transaction fees Furthermore, the brokerage department at VPS is dedicated to providing comprehensive investment consulting services.
When considering transaction fees, investors must also evaluate the quality of their consulting broker, as this impacts the level of support they receive Securities accounts are typically managed by the brokerage department, giving investors the option to trade independently or seek professional advice, which often comes with a higher fee However, for first-time market entrants, obtaining this consultation is essential for informed decision-making.
Bo cau hoi Bao lanh - Question bank
BCTC quy I Cty me - Tài liệu tham khảo
Investors must take responsibility for their decisions every time they click the "Buy" or "Sell" button on a stock While seasoned investors benefit from their knowledge and experience, new investors can mitigate risks by seeking advice from their stock brokerage department.
VPS securities company stands out in the market by offering consistent transaction fees for both accounts with and without consulting brokers, unlike many competitors that typically impose higher fees for broker-assisted transactions This unique pricing strategy positions VPS favorably within the stock brokerage market, enhancing its appeal to a broader range of investors.
Recent data on stock brokerage market share reveals that VPS, SSI, HCM, VND, and MSB securities companies collectively hold 65-70% of the total market share in the stock brokerage sector.
VPS is a leading securities company in Vietnam, commanding a substantial market share, particularly in the derivatives segment, which constitutes nearly 60% of its operations Just as a quality product at a competitive price attracts numerous customers, VPS's strong performance and reputation continue to draw significant interest from investors.
VPS Securities Company holds a significant share of the stock brokerage market due to its high-quality services and exceptional support consulting team, attracting numerous investors to open accounts Additionally, VPS offers the lowest stock transaction fees in Vietnam, further enhancing its appeal The company's advanced software system also contributes to its competitive edge in the market.
In today's digital trading landscape, effective trading software systems and robust investment support services are crucial for success With all transactions conducted online, the efficiency and quality of the software directly impact investors' ability to execute timely buy and sell orders A slow or inadequate system can significantly hinder trading performance.
Securities companies now have many investment support services, such as virtual stock trading software systems, software providing stock data, investment buying and selling recommendations, etc.
VPS offers a fast and stable software system, ensuring reliable performance even during market downturns Its mobile interface is not only visually appealing but also modern, enhancing user experience Additionally, VPS features a virtual derivatives trading system that is particularly beneficial for new investors, providing them with a supportive platform to navigate the trading landscape.
Securities analysis and… None Quyet dinh cong bo danh sach nha tao…
Securities analysis and… None 3 f Charter capital of VPS
When choosing a stock account provider, reputation and safety are crucial factors for customers A securities company with substantial charter capital reflects a commitment to sustainable operations and attracts significant cash flow and clientele VPS Securities Company, ranked among the top three in market capitalization, enhances long-term safety for clients entrusting their accounts Additionally, VPS supports the opening of EKYC securities accounts, streamlining the onboarding process for investors.
Account opening process
Use VPS SmartOne app to open an online securities account
Step 1: dowload app SmartOne Online trên Appstore (IOS) or CH Play (Android).
Step 2: After successfully downloading, click "Open an account now"
Step 3: Enter basic information and click "Continue"
Step 4: Take/upload photos of valid ID/CCCD front and back (image is clear and well lit)
Step 5: Scan for facial recognition
Step 6: Download a photo of your personal signature (sign and clearly state your full name) and enter the OTP authentication code (sent to your registered personal phone number) Then the screen will switch to notification of successful mining of the account.
Step 7: Receive account number, login name, password, PIN in phone SMS and receive account opening contract in registered gmail.
Step 8: Log in to your account Section to change password and Pin code for the first time + Verify account information.
How to deposit money into VPS securities account from VPBank (via VPBank's Smart Banking application)
Step 1: At the main screen of the app, click "Other services", select "Deposit securities", then select the provider "VPS Securities"
Step 2: Enter correct information to make the money transfer
Customer code: enter the stock account number after the available string 026C
Securities account: select the subaccount you want to pay
The amount you want to pay
Step 3: Check the information and click "Confirm"
Step 4: Enter Smart OTP PIN and press "Confirm transaction"
How to trade/Place orders
Step 1: Select the "Stocks" icon and the screen displays the interface as shown
Select “Buy/Sell” depending on your needs
Step 2: Enter the stock code you want to trade and the value you want to buy
To complete a transaction, the buying volume must not exceed the Maximum Buying Volume The system will indicate this by displaying the "Maximum purchasing power" and "Maximum purchasing volume."
Step 3: Click the "Place order" button and the screen will display the successful transaction status
Securities Investment Commencement Timing
Investment Start Time: 10:10 AM on October 3, 2023
Investment End Time: 9:31 AM on November 1, 2023
Total Initial Investment Amount: 163,000 VND
Number of HSG Shares Invested: 8.35
Steps in making the investment choice
Step 1: Our group conducted research and refered to the stock codes recommended during the expert session on September 24, 2023.
Step 2: The leader scheduled a meeting, and our group discussed and made the decision to select stock code HSG for investment.
Step 3: The leader created VPS account, show the members how to create account, deposit funds, and purchase shares We had been monitoring the stock code HSG from October 3rd to November 1st.
Investment diary
Securities market situation at the time of investment
In September, the Hanoi Stock Exchange (HNX) experienced a decline, with the HNX index closing at 236.35 points, marking a 5.1% decrease from August Despite this downturn, foreign investors resumed net purchases exceeding 356 billion VND, with total buying reaching over 778 billion VND and selling amounting to more than 422 billion VND.
In early September, the HNX stock market continued its upward trend, with the HNX-Index reaching a peak of 256.32 points on September 12, marking its highest level in 2023 However, by the end of the month, the index experienced a decline, closing at 236.35 points, which represents a 5.1% decrease from the end of August.
Market liquidity has declined compared to the previous month, with average trading volumes dropping to over 116 million shares per session This corresponds to an average trading value exceeding 2,298 billion VND per session, reflecting a 22.7% decrease in transaction volume and a 13.3% decrease in transaction value.
In September, the HNX30 stock group recorded a trading volume exceeding 1,466 million shares, with a total transaction value surpassing 35.03 trillion VND This accounted for 66.42% of the trading volume and 80.22% of the overall market transaction value.
Saigon-Hanoi Securities Joint Stock Company's stock code SHS leads the trading volume at HNX, accounting for 20.9% of the total market volume with over 474 million shares traded Following SHS is the CEO stock of C.E.O Group Joint Stock Company, which represents 8.52% of the trading volume, totaling more than 193 million shares.
In September, CMH Vietnam Group Joint Stock Company saw the most significant price increase, with its CMS stock rising by 78.67% to close at 26,800 VND per share, an increase of 11,800 VND per share Following closely was HCT stock from Hai Phong Cement Trading-Service-Transportation Joint Stock Company, which also experienced notable gains.
14 with an increase of 55.56% (equivalent to 4,000 VND/share) reaching 11,200 VND/share.
KDM stock of GCL Group Joint Stock Company surged by 51.49%, rising to 20,300 VND per share, while HJS stock of Nam Mu Hydropower Joint Stock Company increased by 43.94%, reaching 47,500 VND per share.
In September, foreign investors made a net purchase exceeding 356 billion VND, with total buying transactions amounting to over 778 billion VND and selling transactions reaching more than 422 billion VND.
Foreign investors show a strong preference for HUT stock of Tasco Joint Stock Company, which accounts for 18.2% of their purchases, totaling approximately 8.7 million shares Following closely is IDC stock of IDICO Corporation - Joint Stock Company, representing 7.9% of foreign trading volume with over 3.8 million shares.
In September, foreign investors predominantly traded SHS shares of Saigon-Hanoi Securities Joint Stock Company, with over 5.9 million shares exchanged, representing 12.3% of their total trading volume TNG shares of TNG Investment and Trading Joint Stock Company followed, with more than 2.2 million shares traded, accounting for 4.6% of foreign investors' activity Additionally, proprietary trading activities on the HNX by member securities companies reached a transaction value exceeding 1,714 billion VND, which constitutes 3.9% of the overall market, with a net buying value of 62.3 billion VND.
In September, the HNX listed market had 5 additional listed businesses with more than 64.3 million shares.
As of the end of September, the HNX listed market featured 330 stock codes with a total listed value of 149.3 trillion VND The market capitalization at the final trading session of September rose to 310.6 trillion VND, marking a 1.6% increase from the previous month.
In the third quarter of 2023, the average trading volume surged to 116 million shares per session, while the average transaction value reached 2,071 billion VND per session This reflects a significant increase of 50.8% in trading volume and 33.3% in transaction value compared to the same period in 2022.
Analysis of Hoa Sen Joint stock company
a, Overview of Hoa Sen Group:
Hoa Sen Group Joint Stock Company stands out as a prominent conglomerate in Vietnam's steel production and related products sector With a track record of significant achievements, the company has cemented its status as a key player in the steel manufacturing and construction materials industry.
Hoa Sen Group specializes in steel production and offers a wide range of steel-related products, such as galvanized steel sheets, steel pipes, roofing sheets, and various value-added processed items.
Hoa Sen Group is a prominent company with a vast production and distribution network across the nation, ensuring a strong market presence Additionally, the company successfully exports its products to various international markets, highlighting its global reach.
Hoa Sen Group has garnered numerous prestigious accolades, including the Second-class Labor Order, and has been recognized among Vietnam's top companies Notably, it has secured positions in the Top 10 Outstanding Vietnamese Brands and the Top 10 Reputable Building Material Companies.
Hoa Sen Group utilizes a range of competitive strategies, such as competitive pricing, product diversification, and enhancing quality and efficiency The company also focuses on investing in research and development, expanding its market presence, building a strong brand, and implementing effective risk management practices.
From 2001 to 2007, Hoa Sen Group was founded and underwent remarkable growth, significantly expanding its production activities The company invested in cutting-edge infrastructure and technology to improve production efficiency and product quality Additionally, the conglomerate diversified its product range by manufacturing and trading a variety of steel and steel-related products.
From 2008 to 2015, Hoa Sen Group significantly expanded its production scale and boosted its exports to international markets, establishing a strong reputation for exporting steel products and construction materials related to steel.
16 shares were listed on the Ho Chi Minh City Stock Exchange with the stock symbol HSG (57,038,500 shares).
Hoa Sen has established itself as a national brand across three key product lines: steel sheets, galvanized pipes, and plastic pipes The company has earned several prestigious accolades, including a spot among the Top 10 Outstanding Socially Responsible Enterprises, the Third-class Labor Order, and recognition as the Best-Managed Company in Asia in 2014.
Since 2016, the Hoa Sen Group has focused on continuous development and innovation, employing competitive strategies to enhance its standing in the steel industry The company has garnered numerous prestigious awards and recognitions, particularly in branding and reputation, highlighting its commitment to excellence in the investment sector.
Hoa Sen Group focuses its investment activities on the steel production and steel-related products industry, engaging in various key operations and sectors within this field.
Hoa Sen Group specializes in steel manufacturing and trading, offering a range of products including galvanized steel, chrome-coated galvanized steel, and steel pipes With significant investments in advanced manufacturing facilities, the company effectively meets both domestic and international market demands for high-quality steel products.
Hoa Sen Group not only specializes in steel production but also manufactures and trades a variety of steel-processed products, such as roofing sheets, corrugated steel, pipes, and essential accessories.
Export: Hoa Sen Group exports its products to numerous international markets and has established a strong reputation in exporting steel products and related items.
Infrastructure Investment: The company has undertaken infrastructure investment projects such as seaports, industrial infrastructure facilities, and industrial park development projects to create favorable conditions for production and export.
Technology Development and Research: Hoa Sen Group has invested in research and technology development to enhance products and manufacturing processes. d Subsidiary Companies:
Cold-rolled steel production, mechanical processing, metal treatment, and coating
Manufacturing and trading of construction material
Hot-dip galvanized steel pipe production Ba Ria -
Manufacturing and trading of construction materials, including steel pipes and galvanized steel pipes.
Production of galvanized steel roofing sheets, aluminum-zinc alloy-coated steel, zinc- coated and coated with various other alloy types;
Production of galvanized steel pipes and slit steel coils.
Production of galvanized steel roofing sheets, aluminum-zinc alloy-coated steel, zinc- coated and coated with various other alloy types, and cold-rolled steel coil production
Manufacturing of steel products such as black steel pipes and galvanized steel pipes/aluminum-zinc alloy-coated steel pipes
• Top 10 Reputable Building Material Companies
• Top 50 Best Listed Companies in 2022
• Top 500 Largest Private Enterprises in Vietnam
• The largest private enterprise in Vietnam
• Major Taxpayer Compliant with Customs Laws
• National Vietnamese Brand f Competitive Strategy of the Company:
1 Competitive Pricing: Hoa Sen Group may apply a competitive pricing strategy to attract customers This includes offering products and services at competitive prices to compete with industry peers.
2 Product Diversification: The conglomerate can expand its product portfolio to meet diverse market demands This may involve manufacturing and supplying various steel and steel-related products.
3 Quality and Efficiency Improvement: The company can focus on enhancing product quality and production efficiency to provide high-value products to customers and improve competitiveness.
4 Investment in Research and Development: The company can invest in research and technology development to enhance manufacturing processes, create new products, and improve production efficiency.
Expanding the export market is a crucial component of Hoa Sen Group's competitive strategy, enabling the company to navigate domestic market limitations while seizing new international opportunities.
5 Strong Brand Building: Establishing a strong and reputable brand within the industry is a significant factor for effective competition.
6 Risk Management: The conglomerate can apply risk management strategies to cope with the business environment, such as fluctuations in raw material prices or regulatory changes. g SWOT Analysis Model:
The SWOT analysis for Hoa Sen Corporation evaluates its internal strengths and weaknesses alongside external opportunities and threats This strategic tool helps identify key factors that influence the company's performance and market position By understanding these elements, Hoa Sen Corporation can make informed decisions to enhance its competitiveness and navigate challenges effectively.
Large scale: Hoa Sen Group is one of the leading steel production and export conglomerates in Vietnam.
Modern infrastructure: The company has advanced manufacturing and transportation infrastructure, enhancing production capacity and providing high-quality products.
Product diversity:offering various steel products, including coils, sheets, pipes, and value-added processed products.
Raw material dependence: Hoa Sen Group relies on importing major raw materials like iron ore and titanium ore, making it susceptible to global price fluctuations and supply disruptions.
Financial capability: Some aspects of the company's financial situation may pose challenges, including foreign debt and the need for careful financial management.
Intense competition: The steel market is highly competitive, with the presence of numerous domestic and international competitors.
Enhanced Exports: Hoa Sen Group has opportunities to expand its export markets, especially in regional and global markets.
Product Development: Diversify and expand its product line to include more value-added processed steel products.
Growth in Construction and Industry: Increased demand for steel products in the construction and industrial sectors presents growth opportunities.
Raw Material Price Volatility: Fluctuations in iron ore and other raw material prices can significantly impact profitability.
Regulatory and Policy Changes: Changes in trade regulations and environmental policies can affect the company's production and export activities.
Competition from Competitors: Fierce competition from steel industry rivals can pose a significant threat.
Analysis of the HSG Stock Trading Process
After researching, referencing, and analyzing based on the knowledge we have learned, our group had decided to invest in HSG stock (Hoa Sen Group).
Since early September, HSG stock has shown an upward trend, peaking at a closing price of 23 on September 20, reflecting a price increase of 5.50% However, between September 20 and October 2, the stock price fell to 20.1 On the morning of October 3, our group decided to purchase 8.35 shares at a price of 19.55, despite the closing price that day dropping to 18.7, which represented a decline of 6.97%.
Since its inception, HSG stock has experienced a significant downtrend marked by continuous price fluctuations, hitting a low of 16.6 on October 26th, reflecting a decline of 6.74% However, beginning October 27th, we observed a slight uptrend in HSG stock prices Consequently, our group opted to sell on November 1st to mitigate losses and manage investment risks effectively.
The profit at the end of the investment = Amount received upon selling - Amount deducted upon purchase
Assessment of the group's investment outcomes
Our group's fundamental and technical analysis processes are lacking in thoroughness and precision, primarily due to incomplete deductive reasoning and insufficient experience in stock investment These shortcomings directly contribute to the group's ineffective decision-making.
Another reason for the group's ineffective investment is the impact of economic market fluctuations on businesses:
Over the past ten months, the stock market has faced significant macroeconomic fluctuations both domestically and globally, influenced by heightened political tensions and high inflation These factors have prompted many economies to tighten their monetary policies, resulting in the appreciation of the USD and exerting pressure on exchange rates worldwide As a highly open economy, Vietnam has not escaped these effects, with many of its trading partners experiencing slow growth or recession, leading to a substantial decline in imports and exports and a slowdown in production activities.
Specifically for the steel industry:
In the second quarter of 2023, 24 listed steel companies reported a 27.7% decline in total revenue compared to the same period last year, with only a slight increase of 0.3% from the first quarter of 2023 Additionally, the total post-tax profit (PAT) of the parent company remained unchanged compared to the previous quarter.
In the second quarter of 2023, despite an increase in gross profit margin from 5.5% to 7.4% due to reduced inventory costs and stable input costs, half of the listed companies still faced losses.
The third quarter of 2023 poses significant challenges for steel production companies, as weak market demand driven by the rainy season and falling prices is expected to negatively affect profitability, despite stable input costs.
In the third quarter of 2023, Hoa Sen Group (HSG) reported a net profit of just over 14 billion VND, marking a significant decline from the 251 billion VND profit in the previous quarter This drop is attributed to a sharp decrease in sales and financial revenues Over the cumulative nine-month period, the company faced a net loss of 410 billion VND.
Investing in HSG stock has provided our group with invaluable insights into the stock market, highlighting the inherent risks of investment Echoing Warren Buffett's philosophy, "The most important investment you can make is in yourself," we recognize that while many focus on finding investment opportunities, the true value lies in enhancing our knowledge and skills The stock market is characterized by its 'buy-sell risk' nature, making risk management essential Our article details our investment journey, examining less effective business operations while emphasizing the lessons learned and the reasons behind our decisions.
1 Hoa Sen Joint stock company https://finance.vietstock.vn/HSG-ctcp-tap-doan-hoa-sen.htm
2 Vietnam’s current economic situation https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2023/09/bao-cao-tinh-hinh- kinh-te-xa-hoi-quy-iii-va-9-thang-nam-2023/
3 Overview of Hoa Sen Group and history of formation and development https://hoasenjobs.com/trang-chu/trang-chu.35a515b1/vi
4 Introduce VPS company and reasons for choosing to open account https://nududo.com/co-nen-mo-tai-khoan-chung-khoan-vps-hay-khong/
5 Securities market at the time of investment https://nhandan.vn/hnx-thang-9-nha-dau-tu-nuoc-ngoai-mua-rong-356-ty-dong- post775849.html
6 Business update report 14/8/2023 – HSX: HSG https://www.bsc.com.vn/Report/ReportFile/4519315
7 Securities: ups and downs and expectation 2023