HSC Q3/2026: Pre-Tax Profit VND 371B, Down 33% as Brokerage Revenue Falls 70%

Overview

Công ty Cổ phần Chứng khoán TP.HCM (HSC), listed on HOSE, reported Q3/2026 revenue of VND 1,182 billion (down 15% YoY) and pre-tax profit of VND 371 billion (down 33% YoY), per its quarterly financial statements. The decline reflects a sharp contraction in market liquidity that cut brokerage revenue by 70%, partly offset by continued growth in margin lending. Nine-month pre-tax profit of VND 1,075 billion was flat versus the same period in 2025.

Key Facts

• Q3/2026 revenue: VND 1,182 billion, down 15% YoY from VND 1,389 billion.
• Q3/2026 pre-tax profit: VND 371 billion, down 33% YoY.
• 9M/2026 revenue: VND 3,634 billion, up 17% YoY; 9M pre-tax profit VND 1,075 billion, flat YoY.
• Margin lending revenue: VND 758 billion (+18% YoY); outstanding margin loans VND 29,170 billion at 30/09/2026, up 4% from VND 28,150 billion at the start of the year.
• Brokerage revenue: VND 152 billion, down 70% YoY; HSC brokerage market share 6.1%, fifth-largest on HOSE.
• Average daily market turnover in Q3/2026: about VND 18,500 billion, down 58% from the record ~VND 43,800 billion/day in Q3/2025; foreign investors net sold more than VND 18,000 billion.
• Total assets VND 43,044 billion (-4% YoY, -7% YTD); equity VND 14,505 billion (+37% YoY) after the late-2025 share issuance.

What Happened

HSC published its Q3/2026 financial statements showing revenue of VND 1,182 billion and pre-tax profit of VND 371 billion, down 15% and 33% respectively against a high base in Q3/2025. The company attributed the brokerage contraction to weaker market liquidity and to the prior-year comparison, which included distribution fees from the TCBS IPO. Proprietary and treasury operations generated VND 247 billion (+9%), mainly from bank bond and term-deposit interest plus covered-warrant issuance and market-making. Corporate finance advisory contributed VND 9 billion, with several M&A and DCM mandates in progress expected to contribute in coming quarters.

Total operating expenses fell 3% YoY to VND 811 billion, but interest expense rose 30% to VND 508 billion, tracking the larger margin-lending book. Brokerage costs fell with transaction volumes and fixed costs declined 7% YoY. On the balance sheet, total assets stood at VND 43,044 billion at 30/09/2026, down 4% YoY and 7% from the start of the year, as the company trimmed its equity and deposit-certificate portfolios. Equity reached VND 14,505 billion, up 37% YoY, reflecting capital from the late-2025 share issuance. The statements do not disclose a full-year profit target or the value of the new funding recorded in October.

Market Context

HSC trades on HOSE within the securities sector, which is highly geared to market turnover. Average daily turnover of about VND 18,500 billion in Q3/2026, down 58% from the record ~VND 43,800 billion/day a year earlier, and more than VND 18,000 billion of foreign net selling explain the sector-wide pressure on brokerage income. HSC’s 6.1% market share and fifth-place ranking on HOSE place it among the larger mid-tier brokers, but its revenue mix now leans on margin lending rather than transaction fees. The source does not provide HSC’s share price performance or valuation multiples.

Strategic Significance

The result highlights a structural shift in HSC’s earnings base: margin lending now generates roughly five times the revenue of brokerage, making net interest margin and funding cost the dominant drivers of profitability rather than trading volume. That insulates earnings somewhat from liquidity cycles, but it also raises sensitivity to interest expense, which grew 30% YoY to VND 508 billion, and to credit risk if margin loan balances of VND 29,170 billion sour. The 37% YoY increase in equity from the late-2025 issuance provides room to expand the margin book, and management flags new funding recorded in October as additional headroom. The strategic question for long-term holders is whether HSC can convert that capital into margin share without compressing spreads, while rebuilding advisory and brokerage income when liquidity recovers.

What to Watch

• Q4/2026 financial statements, to confirm whether the October funding expands the margin loan book beyond VND 29,170 billion.
• Monthly HOSE turnover data, as a recovery above the Q3/2026 average of VND 18,500 billion/day would ease brokerage pressure.
• Interest expense trend, given the 30% YoY rise to VND 508 billion in Q3/2026.
• Disclosure on the M&A and DCM advisory mandates expected to contribute in coming quarters.
• Foreign ownership and margin lending balance filings for shifts in funding structure.