HD Securities (HDS) Q2/2026 Pre-Tax Profit Surges 293% to VND 1,118 Billion

Overview

HD Securities (HDS) reported a record quarterly pre-tax profit of VND 1,118 billion for Q2/2026, a 293% increase year-on-year, joining the elite group of securities firms with quarterly profits exceeding VND 1,000 billion. Revenue surged 171% to VND 1,427 billion while operating costs fell 15%, driving the exceptional performance.

Key Facts

• Pre-tax profit for Q2/2026 reached VND 1,118 billion, up 293% from VND 284 billion in Q2/2025.
• Net profit after tax was VND 894 billion, up 296% year-on-year.
• Operating revenue hit VND 1,427 billion, a 171% increase from the prior year.
• Operating costs declined 15% to VND 185 billion.
• Revenue from underwriting and agency issuance surged to VND 601 billion, more than 10 times the VND 57.9 billion in Q2/2025.
• Gains from financial assets at FVTPL reached VND 543 billion, 2.64 times higher year-on-year.
• Total assets stood at VND 20,264 billion as of June 30, 2026, up 175% from end-Q1/2026.
• Shareholders’ equity rose to VND 13,419 billion, up 257% from the previous quarter.

What Happened

On July 23, 2026, HD Securities (HDS) released its Q2/2026 financial statements, revealing a pre-tax profit of VND 1,118 billion, nearly quadruple the VND 284 billion recorded in the same period last year. The company attributed the strong performance to robust growth in underwriting and agency issuance, as well as gains from financial assets at fair value through profit or loss (FVTPL). Revenue from underwriting alone surged more than tenfold to VND 601 billion, reflecting the market’s recognition of HDS’s advisory and capital arrangement capabilities.

The company noted that realized profits accounted for VND 975 billion of the total, significantly higher than unrealized profits of VND 142 billion, indicating that the bulk of earnings came from actual transactions. For the first half of 2026, realized and unrealized profits stood at VND 1,351 billion and VND 119 billion, respectively.

Market Context

HDS, listed on UPCOM, has been one of the top-performing securities stocks in Vietnam, consistently delivering high returns on equity (ROE). According to FiinPro-X data, HDS recorded the highest ROE in the securities industry for two consecutive years: 25% in 2024 and 33% in 2025. The Q2/2026 results further reinforce its leadership, with a trailing 12-month ROE of 32%. The stock has attracted investor attention amid a broader market recovery, though specific price action data is not provided in the source.

Strategic Significance

The record profit underscores HDS’s successful strategy of focusing on high-margin investment banking services, particularly underwriting and agency issuance, which now contribute a significant portion of revenue. The company’s ability to grow revenue while reducing costs highlights operational efficiency and effective risk management. The sharp increase in total assets and equity, driven by capital injections, positions HDS for further expansion in a competitive securities market. Its sustained high ROE suggests a disciplined capital allocation approach that could continue to generate shareholder value.

What to Watch

• Q3/2026 earnings release to see if profit growth momentum is maintained.
• Changes in the underwriting pipeline and new mandates.
• Movement in the FVTPL portfolio and unrealized gains/losses.
• Any capital-raising plans or dividend announcements following the equity increase.
• Regulatory developments affecting the securities industry, particularly margin lending and underwriting rules.