EVS Securities Posts Record Q1 Loss of VND 197B, Worst in Sector

Overview

EVS Securities (EVS) reported a Q1 2026 pre-tax loss of nearly VND 197 billion, the largest loss among all listed securities companies in Vietnam. Operating revenue collapsed 91% year-on-year to just VND 8 billion, as trading, lending, and brokerage income all declined sharply, while operating expenses more than tripled. The company has scheduled its annual general meeting for April 22, 2026, where it will present a modest full-year profit target of VND 7.4 billion.

Key Facts

• EVS recorded a Q1 2026 pre-tax loss of VND 197 billion, the worst in the securities sector.
• Operating revenue fell 91% YoY to VND 8 billion.
• Revenue from financial assets at fair value through profit or loss (FVTPL) dropped from VND 75 billion in Q1 2025 to just over VND 2 billion.
• Lending and receivables income declined 87% to under VND 3 billion.
• Brokerage revenue halved to over VND 2 billion.
• Operating expenses surged to VND 188 billion, more than triple the prior-year period.
• The company targets 2026 full-year operating revenue of VND 123 billion and pre-tax profit of VND 7.4 billion.
• The annual shareholder meeting is set for April 22, 2026, with three candidates nominated for the board, including an independent member.

What Happened

EVS Securities disclosed its Q1 2026 financial results in a filing ahead of its annual general meeting. The company reported a pre-tax loss of nearly VND 197 billion, making it the most unprofitable securities firm in Vietnam for the quarter. The loss was driven by a collapse in core revenue streams: trading income from FVTPL assets fell from VND 75 billion to just over VND 2 billion, lending income dropped 87% to under VND 3 billion, and brokerage fees halved to over VND 2 billion. Meanwhile, operating expenses ballooned to VND 188 billion, more than triple the VND 60 billion recorded in Q1 2025, with additional management costs of nearly VND 10 billion.

In its meeting documents, EVS set a 2026 full-year target of VND 123 billion in operating revenue and VND 7.4 billion in pre-tax profit, implying a dramatic turnaround from the Q1 loss. The company also announced the nomination of three candidates for its board of directors, including an independent member, Do Thi Hong Hai, who currently serves as a board member and chair of the audit committee.

Market Context

EVS is listed on the HOSE exchange. The securities sector has faced headwinds from declining market liquidity and lower margin lending demand in early 2026. EVS’s Q1 loss stands out as the largest in the industry, reflecting its heavy reliance on proprietary trading and margin lending, which were hit hard by the market downturn. The company’s stock price has likely come under pressure following the announcement, though specific price data is not provided.

Strategic Significance

The Q1 results highlight EVS’s vulnerability to market volatility and its concentrated revenue model. The sharp increase in operating expenses, which more than tripled, suggests either one-time charges or a structural cost base that is unsustainable at current revenue levels. The full-year profit target of VND 7.4 billion implies management expects a strong recovery in the remaining three quarters, but achieving this will require a significant rebound in trading volumes and lending activity. The board nominations, including an independent member, may signal efforts to improve governance and oversight.

What to Watch

• Q2 2026 earnings release to see if revenue recovers and costs are controlled.
• Market liquidity trends on HOSE, which directly impact EVS’s brokerage and trading income.
• Any disclosure of the nature of the VND 188 billion in operating expenses (e.g., one-time provisions or recurring costs).
• Shareholder meeting outcomes on April 22, including approval of the business plan and board elections.
• Changes in margin lending policies or capital allocation strategy by EVS management.