HSC Securities H1 2026 Revenue Up 44%, Pre-Tax Profit Up 35%

Overview

HSC Securities (HOSE: HSC) reported a 44% increase in revenue and a 35% rise in pre-tax profit for the first half of 2026, driven by strong performance in margin lending, brokerage, and proprietary trading. The company also announced a rights offering to raise approximately VND 2,700 billion to support its margin lending business.

Key Facts

• H1 2026 revenue reached VND 2,452 billion, up 44% year-on-year.
• Pre-tax profit for H1 2026 was VND 704 billion, up 35% year-on-year.
• Margin lending revenue grew 50% to VND 1,532 billion, contributing the largest share.
• Outstanding margin loans stood at VND 29,024 billion as of June 30, 2026.
• Brokerage revenue increased 31% to VND 521 billion; market share improved to 7.1% from 6.9%.
• Proprietary trading revenue rose 66% to VND 361 billion, driven by ETF market-making and covered warrants.
• The company plans to issue nearly 270 million shares to existing shareholders at VND 10,000 per share, aiming to raise VND 2,700 billion.

What Happened

HSC Securities released its Q2 2026 financial statements, reporting Q2 revenue of VND 1,172 billion (+39%) and cumulative H1 revenue of VND 2,452 billion (+44%). Pre-tax profit for the first half reached VND 704 billion, a 35% increase from the same period in 2025. The results were driven by robust market liquidity, with average daily trading value reaching nearly VND 29,200 billion, up 38% year-on-year.

All three core business segments posted double-digit growth. Margin lending remained the primary growth engine, with revenue up 50% and outstanding loans increasing to VND 29,024 billion. Brokerage revenue rose 31% as market share expanded to 7.1%. Proprietary trading revenue surged 66%, primarily from ETF market-making and covered warrants. However, corporate finance advisory revenue fell 82% to VND 11 billion due to a high base from large deals completed in H1 2025. The company noted it is currently working on several IPO and M&A transactions expected to contribute in coming quarters.

Total operating expenses increased 47% to VND 1,748 billion, mainly due to a 75% rise in interest expenses to VND 1,032 billion, reflecting expanded borrowing to fund margin lending. Fixed costs rose only 9%, indicating operational leverage.

Market Context

HSC is listed on HOSE and is one of Vietnam’s leading securities companies. The strong H1 results come amid elevated market liquidity, with average daily trading value up 38% year-on-year. The company’s focus on margin lending has driven asset growth, with total assets reaching VND 41,259 billion (+18% year-on-year) and equity rising 44% to VND 14,640 billion, partly boosted by a share issuance in late 2025. The rights offering announced in May 2026 is part of a broader capital increase plan that also includes ESOP and private placements, which could lift charter capital from VND 10,808 billion to over VND 15,800 billion.

Strategic Significance

The results underscore HSC’s strategy of leveraging margin lending as a core growth driver, capitalizing on rising market participation. The planned rights offering, if fully subscribed, will provide additional capital to expand this high-margin business. The improvement in brokerage market share suggests effective client acquisition, while proprietary trading gains from market-making activities indicate diversification into fee-based income. However, the sharp decline in corporate finance advisory revenue highlights the lumpy nature of that segment. The company’s ability to manage interest costs as borrowing expands will be key to sustaining profitability.

What to Watch

• Completion of the rights offering and subsequent capital increase; subscription period runs from July 29 to August 28, 2026.
• Q3 2026 earnings release to assess whether margin loan growth and market share gains continue.
• Trends in average daily trading value on HOSE, as a proxy for revenue momentum.
• Interest expense trajectory relative to margin loan growth; any signs of margin compression.
• Progress on IPO and M&A deals in the pipeline that could revive corporate finance advisory revenue.