SSI: Understanding the Role & Services of Securities Firm, Summaries of Financial Market

Download SSI: Understanding the Role & Services of Securities Firm and more Summaries Financial Market in PDF only on Docsity! SECURITIES FIRM — GE whl 1 cq COMpPaniles g _ billion’ business combined = securities predicted Y CEU'S come nvestment! © = abinosimaely Company “ fem wel slikely g OQ. Tong deal z Korean = ap 7 54 8 eS LK , package ~/ o firms:: & « Hanmag & trillion market od ustry GROUP 5 - TOPIC 2  Meanings Securities firms serve as important intermediaries Function Helping governments and firms raise fund Facilitate the transactions between investors in the secondary markets Function 7. Operating Mutual Funds 8. Proprietary Trading 2. Facilitating Bond offerings 1. Facilitating stock offerings 6. Providing Brokerage Services 3. Securitizing Mortgages 4. Advising Corporations 5. Mergers and Acquisition (M&A) Function 1. Facilitating stock offerings c. Underwriting a. Organisation b. Distribution of stock d. Advising e. Private placement of ABOUT c. Underwriting involves determining the risk and price of a particular security. It is a process seen most commonly during initial public offerings, securities firms first buy or underwrite the securities of the issuing entity and then sell them in the market STOCK ABOUT d. Advising advising on securities means giving advice or issuing analyses or reports on the timing or terms on which particular securities should be acquired or disposed of STOCK ABOUT e. Private placement of stock A private placement is an offering of unregistered securities to a limited pool of investors. A company first issues stocks to raise funds for the first time on the primary market at an auction. And the securities company is the intermediary in organizing that auction STOCK Function 2. Facilitating Bond offerings 1. Facilitating stock offerings 3. Securitizing Mortgages 3. Securitizing Mortgages some securities firms securitize individual mortgages by obtaining them from the financial institutions that originates them, bundling them into packages (in tranches) based on their risk level, hiring a credit rating agency to assign a rating to the packages, and selling the packages to institutional investors. Function 2. Facilitating Bond offerings 1. Facilitating stock offerings 3. Securitizing Mortgages 4. Advising Corporations When securities firms serve as advisor on mergers, they may also help the acquirer obtain financing. The financing by securities firms may be especially important for acquirers that pursue leveraged buyouts (LBOs) 5. Mergers and Acquisition (M&A) Function 2. Facilitating Bond offerings 1. Facilitating stock offerings 6. Providing Brokerage Services 3. Securitizing Mortgages 4. Advising Corporations 5. Mergers and Acquisition (M&A) Securities firms commonly serve as brokers by executing buy or sell orders desired by their customers: · Online orders. · Management of Customer Accounts. 6. Providing Brokerage Services 8. Proprietary Trading Securities firms commonly engage in proprietary (or "prop") trading, in which they use their own funds to make investments for their own account Function 7. Operating Mutual Funds: Some securities firms operate mutual funds. They may offer stock, bond, and money market funds. 8. Proprietary Trading: Securities firms commonlyengage in proprietary (or "prop") trading, in whichthey use their own funds to make investments for theirown account 2. Facilitating Bond offerings: similar to facilitating stock oferings 1. Facilitating stock offerings: securities firms provide the following services 6. Providing Brokerage Services: Securities firms commonly serve as brokers by executing buy or sell orders desired by their customers: · Online orders. · Management of Customer Accounts. 3. Securitizing Mortgages: some securities firms securitize individual mortgages by obtaining them from the financial institutions that originates them, bundling them into packages (in tranches) based on their risk level, hiring a credit rating agency to assign a rating to the packages, and selling the packages to institutional investors. 4. Advising Corporations: securities firms often serve as advisers for corporations that wish to restructure their operations 5. Financing Mergers and Acquisition (M&A) : When securities firms serve as advisor on mergers, they may also help the acquirer obtain financing. The financing by securities firms may be especially important for acquirers that pursue leveraged buyouts (LBOs) PART 2: OVERVIEW OF SSI 1 2 3 4 5 6 Services of SSI - I. INDIVIDUAL CUSTOMER 1. Equity 2. Derivatives 3. Covered Warrant 4. SBond 5. Investment research 6. Corporate access 1. EQUITY Stockbroking services: Brokerage service at SSI includes trading account management, technical analysis and order support, listed and unlisted stocks (OTC) broking, put-through transaction… Vietnam's best stockbroker 2021 1. EQUITY Cash advance: is a financial service, by which SSI provides investors cash in advance right after their stocks selling orders are successfully matched. There is no longer waiting for cash to be transferred to investors’ account at date T+ 2 according to current regulation. Investors may register for automatically cash advance (this service is available to common stocks trading account only) to increase buying power immediately after the previous stocks selling order has been matched. Financial Services 1. EQUITY Financial Services - List of shareholders management - Shareholders’ rights management and exercise - Confirmation and transferring management for shareholders - Stocks depository when listing or transaction registering Shareholders’ register books management service (OTC): is the service which issuing organization gives authority to SSI to conduct jobs relating to shareholders management on behalf of it, such as the follow 2. DERIVATIVES are financial instruments whose values are based on an agreed-upon underlying assets. A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. The buyer of a futures contract is taking on the obligation to buy and receive the underlying asset when the futures contract expires. The seller of the futures contract is taking on the obligation to provide and deliver the underlying asset at the expiration date. VN30 index futures HNX30 index futures Bond futures 3. COVERED WARRANT (CW) Is a type of securities with collaterals ensured by issuers, allowing investors the rights to buy or to sell underlying assets at a specific price on a specific date in the future, or to settle the difference between strike price and reference price of the underlying assets on the exercised date. Covered warrants come in two types: put warrants and call warrants. 6. CORPORATE ACCESS provides a full suite of consultative and logistics services to bring together institutional investors and corporate clients nationwide. Like: provide in-depth information on the potential of investors; how a company might improve its own attractiveness to such investors. 1 2 3 4 Services of SSI - II. INSTITUTIONAL CUSTOMERS 1. Equity capital market (ECM) 2. DEBT CAPITAL MARKET (DCM) 3. Mergers and Acquisitions (M&A) 4. Corporate finance advisor 1. EQUITY CAPITAL MARKET (ECM) SSI activities range from initial public offerings to follow-on offerings, from private placements to public transactions, from straight equity to convertibles 4. CORPORATE FINANCE ADVISORY SSI provides a full package of financial services including valuation, buy-side and sell-side due diligence in capital-raising or M&A deals, corporate restructuring, preparation of short, mid and long-term capital plan which helps business to manage capital flow, make the value- enhancing decision in finance and investment. Best cross border M&A deal of the year Function 7. Operating Mutual Funds 8. Proprietary Trading 2. Facilitating Bond offerings 1. Facilitating stock offerings 6. Providing Brokerage Services 3. Securitizing Mortgages 4. Advising Corporations 5. Mergers and Acquisition (M&A) PART 3: SOUCES OF FUNDS © Charter capital: VND 14.911 billion SSI is leading in terms of capital sources in the securities industry SSI SSI raised capital by short - term borrowing and financial lease liabilities and the capital contribution which is the issuance of stock. SSI is one of the leading companies in raising capital internationally CONSOLIDATED BALANCE SHEET SSI BEA IMEI Se PO eee ed 32,087,159,357 7 A40,449 414 TOTAL LIABILITIES AND OWNER'S EQUITY j 41,909,854,337,867 43,271,692 ,294,6352 These loans are mainly short-term loans from reputable domestic and foreign commercial banks, accounting for more than 96.5% and the rest are overdraft loans. short-term borowings from foreign banks account for 60% and domestic banks account for 40%. SHORT-TERM BORROWINGS AND FINANCE LEASE LIABILITIES Short-term borrowings Bank overdrafts - Joint Stock Commercial Bank for: ~~ Foreign Trade of Vietnam ; - Joint Stock Commercial Bank for, al investment and Development of “7. Vietnam - Vietnam Joint Stock Commercial Bank 2 for Industry and Trade - Other banks (*) - Other borrowings Total ale Inferest rate % Der anni Under 5.5 Under F.4 Opening balance VAD 34,120,908,370,195 6,011,665,792, 772 25,109,242 577,423 4,700,000,000,000 4,440, 000,000,000 3,000,000, 000, 000 70,265,800, 000,000 3,303,442, 577,423 Ending balance VAD 25,754,560,879,629 688,395,113,033 24,866,165,766,596 5.4 70,000,000, 000 4,940,000,000, 000 712,535, 737,500,000 1.920, 426,266,596 31,120,908,370,195 25,754,560,879,629  1 ll $51 RECEIVES FOREIGN CREDIT LOANS $7148 MILLION — THE BIGGEST IN = Come back SECURITIES INDUSTRY fn 04/2022 (April 4, 2022) Continuously breaking records in value, $5! Securities Joint Stock Company continued fo issue notices of successful signing and completion of disbursement of unsecured loan contracts from a group of financial institutions. foreign government worth 748 million USO. This is also the largest foreign mortgage contract that a Vietnamese securities company has approached fo date. Continuously successful foreign syndicated hoans with higher contract value than previous contracts, and at the same time, ihe val. ey unsecured loans is always leading in the industry. showing that SSl's credit rating is getting higher and higher. shows the efficiency in business activities, the efficiency of capital use, the development potential of $5) in particular as well as of the Vietnamese stock market in general in the eyes of foreign financéal institutions. Er ES OUT $51 cbs) INSTITUTIONAL CUSTOMERS: “Bridge” capital efficiency and investment opportunities GENERAL NEWS fil December 23, 2020 (Source: J $4) is compared to a “cool matchmarber” when conying out hundreds of capital raising deals for businesses through (PO consulting, Nsting, offering, M&A... Since 2008 alone, SS] has raced WS512 billion for the Vietnamese market through many of the largest deals in Southeast Asia, SSI is compared to a “cool matchmaker” when carrying out humdreds of capital raising deals for businesses through IPO consulting, listing, offering, MAA... actively comributing to the construction and development process of S51. Vietnam stock market Fate with the first 2 stocks on the stock exchange Aceending to infarmation from the Government's regular press conference in Novernber 2020, the stock mamket was positive and continued to increase. VWM-IMDEX has surpassed 1,000 poinis. The stock market capitalization reached VND 4.7 TT trillion, equivalent to 76.1% of GBP up #% compared to the end of 2019. SSI In June of this year, SSI securities company for the 5th time excellently became "Best ECM House in Vietnam" PART 4: USES OF FUNDS A. CURRENT ASSETS delivery time = location settled is a: CV REE ae eo: OFTI Lb Z FUTURES == price 4 Saas ACT instrument {tures é “or quantity ‘CONTRAC trading me 5 4 huy sell U4 exchange Standardized future date business = result  A. CURRENT ASSETS 89.8% Cash and cash equivalents | 0.6% FVTPL. AFS financial assets | 0.7% HTM investments ee ( sat) Loans ee oD, Provision for impairment of financial assets and mortgage assets «= 0.1% Receivables | 0.7% B. NON-CURRENT ASSETS 9 10.2% Long-term investments [RD 8.7% HIM investments 9 7.3% () | 2 0.3 4 i. 6 0.7 0.8 0.9 oA @ Rate (%) CONSOLIDATED BALANCE SHEET SSI 37,677,550,442,176 243,325,556,836 38,842,013,253,064 238,480,153,762 2. Financial assets at fair value thro 3. Available-for-sale (AFS) financial assets 4. Held-to-Maturity (HTM) investments 266,416,338,010 7.814,549,.701,705 16,158,911,563,003 17,487,710,420,824 293.958.830.235 5.478.684.999.943 14.723,785,288,602 1.1. HTM investments 2.954.074.043,100 793,143,690,756 3.177,754.285,281 600,299.418,082 41,909,854,335,867 43,271,692,294,652 Available-for-sale (AFS) financial assets Ending balance ss Opening balance Cost Fair value Cost Fair value VND VND VND VND Unlisted shares: = 276,320,839,159 271,579,547,769 276,320,839,159 271,579,547,769 PAN Farm JSC. 93,408,921 ,300 53,408,921,300 53,408,921,300 53,408 921,300 ConCung JSC. 40,007,139,216 40,007,139,216 40,007,139,216 40,007,139,216 Other unlisted shares al 182,904,778,643 178,163,487 253 182,904,778,643 178,163,487,253 Unlisted bonds: -—— 22,379,282,466 22,379,202,466 Total 298,700,121,625 293,958,830,235 276,320,839,159 271,579,547,769 Term deposits and certificates of deposits with remaining maturity under 1 year. CONSOLIDATED BALANCE SHEET SSI A. CURRENT ASSETS 37,677,550,442,176 38,842,013,253,064 1.Cashandcashequivalents: 2433 25,556,836 238,480,153,762 2. Financial assets at fair value through profitorloss(FVTPL) 12,725,086,786,433 17,487,710,420,824 3. Available-for-sale (AFS) financial assets | 266,416,338,010 293.958.830.235 4. Held-to-Maturity (HTM) investments 7,814,549.701,705 5.478.684.999.943 16,158,911,563,003 14.723,785,288,602 -62,069.668,557 -62,341,411,113 368,550,561,368 298,320,863.618 iBoard integrates smart trading tools, and multidimensional market information, capable of trading multiple financial products, and personalizing investment needs anytime, anywhere. Among long-term financial assets, long- term investment accounted for the highest proportion at 85.3%. SSI invests in long-term securities, fund certificates, and derivative securities. As at 30 June 2022, SSI had three indirectly owned subsidiaries by SSI IMF COMPANY NAME | Charter capital ‘SSI International Corporation == sis 18,499,870. bee oererraceeeerenrarsneoes 76,15% S&I Ratings Joint Stock Company 7 VND 30 bilion 63,97% SSI Digital Technology Joint Stock Company VND 200 bilion 68.54% As at 30 June 2022, SSI had 3 associates presented on the consolidated financial statements COMPANY NAME Charter capital (VND) | PO aii |® The PAN Group (PAN) 2,163,585,800,000 Directly Cong Thang Alpha Joint Stock Company 46,700,000,000 Indirectly owned by subsidiary Vietnam Digitalization Investment Fund $0,000,000,000 Directly Implementation for capital contribution to Vietnam Digitalization Fund Ha 19/08/2021 THANK YOU Thank you everyone for listening to our group's presentation and have a nice day!