EVS Securities Swings to VND 42.3B Q3 Loss as Proprietary Trading Collapses

Overview

EVS Securities (HNX: EVS) reported a net loss of VND 42.31 billion for Q3 2026, a sharp reversal from a profit of nearly VND 200 billion in the previous quarter, according to the company’s quarterly financial statements. Operating revenue plunged 92.4% year-on-year to nearly VND 7 billion, driven by losses in proprietary trading and FVTPL revaluation. The swing highlights the outsized impact of market movements on the earnings of small securities firms with concentrated proprietary portfolios.

Key Facts

• Q3 2026 operating revenue: nearly VND 7 billion, down 92.4% from VND 91.75 billion in Q3 2025.
• Q3 2026 net loss after tax: VND 42.31 billion, versus a profit of nearly VND 200 billion in Q2 2026.
• Q3 2026 operating expenses: nearly VND 41.6 billion, down 45% year-on-year but still nearly six times revenue.
• FVTPL net loss in Q3 2026: approximately VND 32.44 billion, compared with a net gain of about VND 258 billion in Q2 2026.
• 9M 2026 operating revenue: VND 296.47 billion, up 41.5% year-on-year; net loss after tax: VND 2.27 billion, versus a profit of VND 7.38 billion in 9M 2025.
• Total assets at 30 September 2026: VND 2,175.5 billion, down more than VND 170 billion from the start of the year; equity: VND 1,976.5 billion.
• Margin loans on the balance sheet at end-September 2026: VND 37.8 billion, down sharply from VND 140.3 billion a year earlier.

What Happened

In its Q3 2026 financial statements, EVS Securities reported operating revenue of nearly VND 7 billion, a 92.4% decline from VND 91.75 billion in the same period last year. Operating expenses fell 45% year-on-year to nearly VND 41.6 billion but remained almost six times revenue, pushing the company to a net loss after tax of VND 42.31 billion. That contrasts with a profit of nearly VND 200 billion in Q2 2026, when revenue exceeded VND 281 billion on strong proprietary trading and gains from revaluation of financial assets.

The earnings reversal stems largely from proprietary trading, particularly FVTPL revaluation. In Q3, gains from FVTPL financial assets totaled only VND 4.52 billion, down from nearly VND 278 billion in Q2. Revaluation gains on FVTPL assets fell to VND 979 million from about VND 276.5 billion, while gains from selling FVTPL assets were VND 3.44 billion. These were offset by nearly VND 37 billion in FVTPL losses, including VND 26.23 billion from revaluation and VND 10.74 billion from asset sales, resulting in a net FVTPL loss of about VND 32.44 billion. In an explanation dated 16 October, EVS attributed the swing to falling stock prices, which reduced proprietary trading revenue and revaluation gains. For 9M 2026, revenue rose 41.5% to VND 296.47 billion, but the company still posted a net loss of VND 2.27 billion, erasing all profit accumulated in the first half.

Market Context

EVS shares closed at VND 5,400 on 20 October 2026 on the HNX. The stock trades at a low absolute price, typical of small-cap securities firms with limited liquidity. The company’s earnings have been highly volatile through the first three quarters of 2026: a loss of about VND 157.5 billion in Q1, a profit of nearly VND 200 billion in Q2, and a loss in Q3. This pattern reflects a business model heavily reliant on proprietary trading and FVTPL revaluation, rather than a diversified fee-based model. The broader Vietnamese securities sector has faced pressure from fluctuating market volumes and valuations, but EVS’s concentrated exposure amplifies these swings.

Strategic Significance

EVS’s Q3 result underscores the risk of a securities firm whose earnings are dominated by proprietary trading and FVTPL revaluation rather than recurring brokerage or margin lending. The sharp contraction in margin loans to VND 37.8 billion from VND 140.3 billion a year earlier suggests the company has scaled back a more stable revenue source, while its investment portfolio has grown. This makes EVS’s profitability highly sensitive to market direction and marks it as a high-beta play on Vietnamese equities. For long-term investors, the key question is whether EVS can build a more diversified revenue base or whether it will remain a leveraged bet on its own trading book.

What to Watch

• Q4 2026 financial statements, expected in January 2027, to see if EVS returns to profit or extends losses.
• Monthly proprietary trading disclosures or portfolio updates, if any, from the company.
• Changes in margin lending balances, which indicate a shift toward or away from recurring income.
• Movements in the VN-Index and HNX-Index, given the direct link between market prices and EVS’s FVTPL gains or losses.
• Any regulatory filings on capital adequacy or risk management as the company’s equity base absorbs losses.