VPS Securities Company provides diverse, high-quality products and services, creating added value for businesses and investors including: stock brokerage, financial services, investment
BANKING ACADEMY OF VIETNAM FACULTY OF FOREIGN LANGUAGES GROUP ASSIGNMENT INVESTMENT REPORT SECURITIES MARKET IN VIETNAM Lecturer Group Class : Trần Anh Tuấn : Group 03 : 231FIN45A06 Assessment of individual contributions in our group Student number Task - assigning work - contributing contents 24A7512000 - completing contents and slides - contributing ideas Contribution Level No Full name Lưu Thu Thủy Phan Thị Thanh Vân 24A7512009 - contributing contents - contributing ideas 100% Nguyễn Thị Thu Hồng 25A7510572 - create presentation slides - contributing ideas 100% Nguyễn Thị Hà 25A7510320 - presenting - contributing ideas 100% Lê Ngọc Diệp - contributing contents 25A7510305 - completing contents - contributing ideas Nguyễn Hải Anh 25A7510287 - presenting - contributing ideas 100% Hồ Lan Phương 24A7511757 - presenting - contributing ideas 100% 100% 100% INDEX I Introduction II Account opening process Introduce VPS company Reasons for choosing VPS company to open account .3 a Brand of VPS securities company b VPS Stock Transaction Fees c The brokerage department supports investment consulting of VPS d Stock brokerage market share of VPS e VPS software system f Charter capital of VPS g Support opening EKYC securities accounts Account opening process Securities Investment Commencement Timing: .13 Steps in making the investment choice: 13 III Investment diary 14 Securities market situation at the time of investment .14 Analysis of Hoa Sen Joint stock company .16 a, Overview of Hoa Sen Group 16 b, History of Formation and Development .16 c Investment Sector 17 d Subsidiary Companies 18 e Company Achievements .19 f Competitive Strategy of the Company 19 g SWOT Analysis Model 20 Analysis of the HSG Stock Trading Process 21 IV Final settlement of account 24 V Assessment of the group's investment outcomes 24 Conclusion……………………….……………………………………………………………………… 26 References…………………………………………………………………………………….………… 26 I Introduction The current percentage of the population with securities market accounts in Vietnam is around 4%, and the government aims to increase the number of participants However, investing in the stock market carries significant risks, but it also offers substantial profit potential for investors To minimize risks and seize opportunities, our group has decided to participate in the "Stock Market" course under the guidance of the instructor This has provided us with an opportunity to invest in and access a new market, and the following report is the result of our stock market investment journey II Account opening process Introduce VPS company VPS Securities Joint Stock Company was established in 2006, when it was first established, it was called Vietnam Prosperity Joint Stock Commercial Bank Securities Joint Stock Company (VPBS) Currently, VPS has become one of the securities companies with the largest market share in Vietnam 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 One of the most important factors in choosing a securities company is the brand of the securities company The brand name securities company is not big, the reputation is not high, the charter capital is low, the amount of money investors deposit is sometimes even larger than the company's charter capital Therefore, choosing a brand is an extremely important factor VPS is one of the securities companies that has many years of experience working in the securities field VPS used to be one of the securities companies belonging to VPBank VPS inherits VPBank's financial management capabilities b VPS Stock Transaction Fees There are many different types of fees that investors have to pay, but the most important are transaction fees and margin loan fees (margin interest rate), as for service fees and taxes, which securities company should an investor open an account at? same On December 27, 2018, the Ministry of Finance issued Circular No 128 regulating service prices in the field of securities applicable to securities trading organizations and commercial banks participating in the Vietnamese stock market According to this regulation, the maximum price of brokerage services for buying and selling stocks, fund certificates, and covered warrants (applicable to listed securities and securities registered for trading) is 0.5 % transaction value and no floor rate applies Regarding derivative securities services, the maximum price of futures contract brokerage services is 15,000 VND/Index futures contract and 25,000 VND/Government bond futures contract Some securities companies announced policies to reduce securities transaction fees to 0.1% such as VPS Securities Joint Stock Company (VPS), Vietnam Construction Securities Joint Stock Company (VNCS) Currently, the fee for underlying securities at VPS is 0.1%, the fee for derivatives transactions is only from 500 - 1000 VND/1 contract, VPS's margin interest rate is less than billion only 8%/1 year VPS is one of the securities companies with the cheapest transaction fees in Vietnam today c The brokerage department supports investment consulting of VPS If transaction fees are a factor investors need to consider, then the quality of the consulting broker is a matter of concern in terms of what support they receive when that broker advises them Securities accounts are usually managed by the brokerage department Investors can choose to trade themselves or receive advice, the fee for advice is usually higher However, for those coming to the market for the first time, this consultation is necessary Document continues below Discover more Securities from: analysis and… FIN08H Học viện Ngân hàng 11 documents Go to course Lecture - Exercises Securities analysis and… None Bo cau hoi Bao lanh 52 Question bank Securities analysis and… None Midterm-Present 2023 - Tài liệu tham… Securities analysis and… None BCTC quy I Cty me 23 14 Tài liệu tham khảo Securities analysis and… None Securities-marketexercise- 2021 Securities analysis and… None Quyet dinh cong bo danh sach nha tao… The investor is responsible for each time he presses the "Buy" or "Sell" button on a Securities stock If you have investment knowledge and experience, it's great But for newNone analysis and… investors, those who not have much experience, the advice of the stock brokerage department will help limit the risks somewhat Currently in the market, there is a VPS securities company that maintains the same transaction fees for accounts without consulting brokers and with consulting brokers (usually other companies will have higher fees when consulting broker) d Stock brokerage market share of VPS According to the latest update on stock brokerage market share, VPS, SSI, HCM, VND, and MSB securities companies have accounted for 65-70% of the stock brokerage market share of the entire market Just like a good, reputable product with a good price will be bought and used by many people and VPS is currently a securities company with a huge market share in Vietnam, the derivatives segment alone accounts for nearly 60% It is not natural that the VPS securities company has such a large stock brokerage market share VPS has good quality and a very good support consulting team, which makes many stock investors open accounts at VPS This Currently, VPS has the cheapest stock transaction fees in Vietnam e VPS software system Trading software systems and investment support services are also very important factors In today's transactions, all transactions are done over the internet The software system is not fast or good, which will hinder investors' ability to buy and sell 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 Advantages: VPS's software system is fast and stable even when the market is bad, the mobile interface is beautiful and modern, and there is a virtual derivatives trading system for new investors f Charter capital of VPS This is one of the very important criteria related to reputation and safety when customers consider the best place to open a stock account Normally, a securities company with a large charter capital will not only demonstrate the company owner's commitment to long-term sustainable operations, but also attract large cash flows and customers.VPS Securities Company is ranked in the top in terms of market capitalization, thus strengthening the long-term safety when entrusting your account to VPS Securities Company g Support opening EKYC securities accounts VPS Securities Company allows opening 100% online securities accounts using EKYC technology to authenticate account opening With just a few steps such as verifying signature and face the investor can open an account This helps all customers anywhere in Vietnam or around the world, just need to bring an ID card or identification card to open a securities account at VPS Account opening process Use VPS SmartOne app to open an online securities account Step 1: dowload app SmartOne Online Appstore (IOS) or CH Play (Android) Step 2: After successfully downloading, click "Open an account now" Step 3: Enter basic information and click "Continue" Securities Investment Commencement Timing: Investment Start Time: 10:10 AM on October 3, 2023 Investment End Time: 9:31 AM on November 1, 2023 Investment Amount: 180,000 VND / members Total Initial Investment Amount: 163,000 VND Selected Stock Investment: HSG 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 13 III Investment diary Securities market situation at the time of investment Statistics from the Hanoi Stock Exchange (HNX) show that, on the listed stock market, HNX index tended to decrease at the end of September and closed at 236.35 points, down 5.1% compared to the end of August Foreign sector returned to a net purchase of more than 356 billion VND in September; Of which, the total buying value reached more than 778 billion VND, the selling value reached more than 422 billion VND Accordingly, in the first half of September, the stock market listed on HNX continued to extend the upward trend from the past months, the HNX-Index peaked at 256.32 points on September 12, the highest index level since the beginning of 2023 After that, HNX-Index tended to decrease in late September and closed at 236.35 points, down 5.1% compared to the end of August Liquidity in the market also decreased compared to last month with an average trading volume of more than 116 million shares/session, corresponding to an average trading value of more than 2,298 billion VND/session, a decrease of 22.7% in volume transactions and decreased 13.3% in transaction value compared to the previous month Transactions of the HNX30 stock group in September had a total trading volume of more than 1,466 million shares, corresponding to a transaction value of more than 35.03 trillion VND, accounting for 66.42% of the trading volume and 80% of the total trading volume .22% of total market transaction value The stock with the largest trading volume at HNX continues to be the stock code SHS of Saigon-Hanoi Securities Joint Stock Company with a proportion of 20.9% of the total market trading volume, equivalent to more than 474 million shares traded traded, followed by CEO shares of C.E.O Group Joint Stock Company with a proportion of 8.52%, equivalent to more than 193 million shares traded Regarding transaction prices, the strongest price increase was the CMS stock code of CMH Vietnam Group Joint Stock Company with the closing price in September increasing by 78.67% (equivalent to 11,800 VND/share) reaching 26,800 VND/share compared to the end of the month Previously, ranked second was HCT stock of Hai Phong Cement Trading-Service-Transportation Joint Stock Company 14 with an increase of 55.56% (equivalent to 4,000 VND/share) reaching 11,200 VND/share Next is KDM stock of GCL Group Joint Stock Company with an increase of 51.49% (equivalent to 6,900 VND/share) reaching 20,300 VND/share; Next is HJS stock of Nam Mu Hydropower Joint Stock Company with an increase of 43.94% (equivalent to 14,500 VND/share) reaching 47,500 VND/share Foreign investors returned to a net purchase of more than 356 billion VND in September, of which the total value of buying transactions reached more than 778 billion VND and the value of selling reached more than 422 billion VND Among them, the stock most purchased by foreign investors is HUT stock of Tasco Joint Stock Company with a proportion of 18.2%, equivalent to 8.7 million shares, followed by IDC stock of IDICO Corporation - Joint Stock Company with a proportion of 7.9% of foreign investors' trading volume, equivalent to more than 3.8 million shares The shares sold the most by foreign investors were SHS shares of Saigon-Hanoi Securities Joint Stock Company with more than 5.9 million shares transferred, accounting for 12.3% of investors' trading volume foreign investors, followed by TNG shares of TNG Investment and Trading Joint Stock Company with more than 2.2 million shares, equivalent to 4.6% of the trading volume of foreign investors Proprietary trading activities of shares listed on HNX of member securities companies in September had a transaction value of more than 1,714 billion VND (accounting for 3.9% of the entire market), of which this block bought a net of The value reached 62.3 billion VND In September, the HNX listed market had additional listed businesses with more than 64.3 million shares At the end of September, the HNX listed market had 330 stock codes with a listed value of 149.3 trillion VND Market capitalization at the last trading session of September reached 310.6 trillion VND, up 1.6% compared to the end of last month Overall, in the third quarter of 2023, the average trading volume reached 116 million shares/session, the average transaction value reached 2,071 billion VND/session, an increase of 50.8% in trading volume and 33.3% in transaction value compared to the same period in 2022 15 Analysis of Hoa Sen Joint stock company a, Overview of Hoa Sen Group: Hoa Sen Group Joint Stock Company, or Hoa Sen Group, is one of the leading conglomerates in Vietnam in the field of steel production and steel-related products The company has achieved numerous notable accomplishments and has established a significant presence in the steel production and construction material industry Business Sectors: Hoa Sen Group primarily operates in the field of steel production and steel-related products, including galvanized steel sheets, steel pipes, roofing sheets, and various value-added processed products Scale and Market Presence: Hoa Sen Group is a large-scale company with an extensive production and distribution network throughout the country They also export their products to numerous international markets Achievements: Hoa Sen Group has received several prestigious awards and recognitions, including the Second-class Labor Order and being featured in the list of top companies in Vietnam, such as the Top 10 Outstanding Vietnamese Brands and Top 10 Reputable Building Material Companies Competitive Strategy: Hoa Sen Group employs various competitive strategies, including competitive pricing, product diversification, quality and efficiency improvement, investment in research and development, market expansion, strong brand building, and risk management b, History of Formation and Development: 2001-2007: Hoa Sen Group was established and experienced significant growth and an expansion of production activities They invested in advanced infrastructure and technology to enhance production efficiency and product quality The conglomerate also diversified its product portfolio by manufacturing and trading various steel and steel-related products 2008-2015: Hoa Sen Group continued to expand its production scale and increased its exports to international markets They built a strong reputation for exporting steel products and steel-related construction materials In 2008, Hoa Sen Group's 16 shares were listed on the Ho Chi Minh City Stock Exchange with the stock symbol HSG (57,038,500 shares) National Brand for three product lines: steel sheets, galvanized pipes, and plastic pipes by Hoa Sen They received numerous prestigious awards, such as being among the Top 10 Outstanding Socially Responsible Enterprises, the Third-class Labor Order, and recognition as the Best-Managed Company in Asia in 2014 2016 - Present: The company continues to develop and innovate, implementing competitive strategies to strengthen its position in the steel industry Hoa Sen Group has achieved several significant awards and recognitions, especially in the areas of branding and reputation c Investment Sector: Hoa Sen Group's investment activities primarily pertain to the steel production and steel-related products industry Here are some of the key operations and sectors that Hoa Sen Group has engaged in: Steel Manufacturing and Trading: Hoa Sen Group engages in the production and supply of steel products such as galvanized steel, chrome-coated galvanized steel, steel pipes, and other related products The company has made investments in state-of-the-art steel manufacturing facilities to cater to domestic and international demand Production and Trading of Steel-Related Products: Apart from steel production, Hoa Sen Group is also involved in the sector of manufacturing and trading steelprocessed products, including roofing sheets, corrugated steel, pipes, and related 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: 17 Name of company Business Sectors: Location Registered Ownership Capital Stake in (Billion HSG VND) Hoa Sen Steel One Member Company Limited (HSSC) Cold-rolled steel production, mechanical processing, metal treatment, and coating Binh Duong 280 100% Ba Ria Vung Tau 300 99,95% Hoa Sen Phu My Hot-dip galvanized steel Ba Ria One Member pipe production Vung Tau Limited Liabilities Company (HSPM) 250 100% Hoa Sen Binh Dinh Sole Member Limited Company (HSBD) Manufacturing and trading of construction materials, including steel pipes and galvanized steel pipes Binh Dinh 105 100% Hoa Sen Nhon Hoi – Binh Dinh One Member Limited Liability Company (HSNH) Production of galvanized steel roofing sheets, aluminum-zinc alloy-coated steel, zinccoated and coated with various other alloy types; Binh Dinh 770 100% Ha Nam 200 100% Hoa Sen Plastics Manufacturing and Joint Stock trading of construction Company material (HSN) Hoa Sen Ha Production of Nam One galvanized steel pipes Member Limited and slit steel coils Liabilities 18 Company (HSHN) Hoa Sen Nghe An One Member Limited Liabilities Company (HSNA) Production of galvanized steel roofing sheets, aluminum-zinc alloy-coated steel, zinccoated and coated with various other alloy types, and cold-rolled steel coil production Nghe An 1100 100% Hoa Sen Yen Bai Building Materials One Member Limited Liabilities Company (HSYB-LTD) Manufacturing of steel products such as black steel pipes and galvanized steel pipes/aluminum-zinc alloy-coated steel pipes Yen Bai 50 100% e Company Achievements: • Second-class Labor Order • Top 10 Outstanding Vietnamese Brands • 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 Quality Gold Award 2019 • National Vietnamese Brand f Competitive Strategy of the Company: 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 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 19 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 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 Market Expansion: Expanding the export market can be a vital part of Hoa Sen Group's competitive strategy This can help the company overcome domestic market constraints and explore new opportunities abroad Strong Brand Building: Establishing a strong and reputable brand within the industry is a significant factor for effective competition 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: SWOT stands for Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T), and it is used to assess the internal and external business environment of a company Below is the SWOT model for Hoa Sen Corporation: Strengths (S): 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 Weaknesses (W): 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 20 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 Opportunities (O): 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 Threats (T): 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) Date 20/09/2023 02/10/2023 03/10/2023 Closing price 23.15 20.1 18.7 Change +/- 0.65% 0.50% -6.97% 21 Observing HSG stock prices from the beginning of September shows that the stock price has been uptrend The peak was the closing price on Sep 20th, which was 23 with a price fluctuation of (+5.50%) Between Sep 20th and Oct 2nd, the price dropped to 20.1 Our group made the decision to purchase 8.35 shares on the morning of Oct 3rd at a price of 19.55 The closing price on that day was 18.7 with a price fluctuation of (-6.97%) 22 Since the start of investment, HSG stock has been a strong downtrend trend, with continuous price fluctuations The lowest price was on Oct 26th, with a closing price of 16.6, price fluctuation of (-6.74%) However, from Oct 27th, our group noticed a slight uptrend in HSG stock price Therefore, our group decided to sell on Nov 1st to cut losses and manage risk during the investment period The profit at the end of the investment = Amount received upon selling - Amount deducted upon purchase = 141,595 - 163,485 = 21,890 (a loss of 13.39%) 23 IV Final settlement of account V Assessment of the group's investment outcomes Our group's fundamental and technical analysis processes have not been thorough, meticulous, and have many shortcomings due to incomplete deductive thinking and lack of experience in stock investment These are direct reasons leading to the group's ineffective decisions Another reason for the group's ineffective investment is the impact of economic market fluctuations on businesses: The stock market over the past nearly 10 months has been affected by many macroeconomic fluctuations both domestically and globally The context of heightened political tension and high inflation has forced many economies to tighten their monetary policies, causing the USD to appreciate, which has put pressure on the exchange rates of most countries With high openness, the Vietnamese economy is not immune to these impacts Many of Vietnam's trading partners experienced slow growth, even falling into recession, leading to a serious decline in imports and exports, as well as a slowdown in production activities Specifically for the steel industry: 24 • According to statistics from KIS Vietnam Securities Company, the total revenue of 24 listed steel companies in the second quarter of 2023 decreased by 27.7% compared to the same period last year and increased by only 0.3% compared to the first quarter of 2023, while the total post-tax profit (PAT) of the parent company in the second quarter of 2023 remained flat compared to the first quarter • Although the gross profit margin improved (from 5.5% to 7.4%) as the pressure of inventory costs disappeared and input costs remained low, half of the listed companies still incurred losses in the second quarter of 2023 • The third quarter of 2023 will be a challenging period for steel production companies as weak market demand due to the rainy season and declining prices will impact profitability, even though input costs are stable • Hoa Sen Group (HSG) reported a net profit of just over 14 billion VND in the third quarter of 2023 (the company's financial year runs from October to September 30), a significant decrease from the second quarter of 2023 when it reported a profit of 251 billion VND The reason for this is the sharp decrease in sales and financial revenues For the cumulative months, the company still incurred a net loss of 410 billion VND 25 Conclusion Through the process of stock investment in the HSG stock code, it has truly provided our group with valuable experience in stock market investment After all, investment involves bearing the risk of losses Following the philosophy of investor Warren Buffett, 'The most important investment you can make is in yourself.' In the market, people tend to be obsessed with seeking investment opportunities, often overlooking the opportunities for learning and knowledge enhancement The stock market is a 'buy-sell risk' market, so risk in the stock market is inevitable, and we can only mitigate the risk for each investment decision by improving our own capabilities Hence, our article on stock investment by our group comprises the investment process, the results of less effective business operations, with a crucial focus on identifying the reasons and the lessons learned by the group References Hoa Sen Joint stock company https://finance.vietstock.vn/HSG-ctcp-tap-doan-hoa-sen.htm Vietnam’s current economic situation https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2023/09/bao-cao-tinh-hinhkinh-te-xa-hoi-quy-iii-va-9-thang-nam-2023/ Overview of Hoa Sen Group and history of formation and development https://hoasenjobs.com/trang-chu/trang-chu.35a515b1/vi Introduce VPS company and reasons for choosing to open account https://nududo.com/co-nen-mo-tai-khoan-chung-khoan-vps-hay-khong/ Securities market at the time of investment https://nhandan.vn/hnx-thang-9-nha-dau-tu-nuoc-ngoai-mua-rong-356-ty-dongpost775849.html Business update report 14/8/2023 – HSX: HSG https://www.bsc.com.vn/Report/ReportFile/4519315 Securities: ups and downs and expectation 2023 26 https://dantri.com.vn/kinh-doanh/chung-khoan-thang-tram-va-ky-vong-nam-202320231028054622850.htm Transaction price history of HSG https://s.cafef.vn/lich-su-giao-dich-hsg-1.chn Price list of VPS https://banggia.vps.com.vn/chung-khoan/HOSE 27