Super profit like HoSE: 10 dong in revenue, nearly 8 dong in profit

May 18, 2022 07:47 GMT+7

The Ho Chi Minh City Stock Exchange (HoSE) has just released the 2021 annual report with the figures of revenue, profit, and contribution to the budget all reaching record levels.

In 2021, HoSE achieved revenue of more than 3,200 billion dong, 3 times higher than the same period in 2020. HoSE’s revenue increased sharply in parallel with the booming stock market in the past year.

In 2021, the average daily value of securities trading at HoSE will reach nearly VND 22,000 billion, an increase of more than 240% compared to 2020. Last year, more than 1.5 million securities trading accounts of individual investors. The number of newly opened domestic employees is higher than the total number of the previous 2017-2020 period.

While revenue increased by more than 200%, HoSE’s operating expenses increased only 95% compared to 2020, accounting for more than 700 billion VND. In the detailed structure, the cost for market monitoring activities accounts for the highest proportion, up to nearly 500 billion VND. This expense fluctuates proportionally to the revenue from securities trading activities on HoSE.

The cost with the second highest proportion is income for employees, more than 83 billion VND. By the end of 2021, the number of employees of HoSE is 246 people, only a slight increase compared to the previous year. Thus, each employee working at HoSE receives an average income of nearly 30 million VND/month.

Thus, HoSE achieved a record pre-tax profit of 2,536 billion dong after more than 20 years of operation, marking the first time the profit reached the trillion dong mark. HoSE’s profit grew by nearly 270% over the same period last year.

With a profit of more than 2,500 billion VND, for every 100 VND in revenue, HoSE earned 78 VND in profit. Two years earlier, HoSE’s profit margin was close to 70%. The profit margin of nearly 80% of HoSE last year is a dream number for most listed companies.

As a state-owned enterprise, most of HoSE’s profits are used to contribute to the state budget. HoSE’s corporate income tax last year was more than 500 billion dong, and the profit paid to the state budget after setting aside the prescribed funds was more than 1,800 billion dong.

This year, one of HoSE’s remarkable goals is to focus all resources on completing the remaining phases of the technology project to put the Korean contractor’s KRX system into operation. The construction of a new trading system has been implemented by HoSE since the early 2010s but has not yet been completed.

Last year, when HoSE continuously blocked orders, adversely affecting the market’s image, the Ministry of Finance coordinated with a number of domestic enterprises such as Sovico and FPT to put a new securities trading system into operation to facilitate transactions. Translating investors smoothly. However, the above HoSE rescue action is only short-term while securities regulators are still waiting for the Korean contractor’s new information technology system to be officially deployed.

According to Dan Tri