HDS Q1 2026 Pre-Tax Profit Surges 260% to VND 352B, DSE Falls 79%

Overview

HDS (Hồ Chí Minh Stock Exchange) reported a pre-tax profit of VND 352 billion for Q1 2026, marking a 260% year-on-year increase, according to its financial statement. This surge contrasts sharply with DSE’s 79% profit decline to VND 14 billion, illustrating a split in performance among Vietnamese securities firms as 37 companies have disclosed results for the quarter.

Key Facts

• HDS’s Q1 2026 pre-tax profit reached VND 352 billion, up nearly 260% from Q1 2025.
• HDS recorded a VND 358 billion gain from financial assets at fair value through profit or loss (FVTPL), more than double the year-ago period.
• HDS’s portfolio of FVTPL assets had a book value of VND 1,942 billion as of March 31, 2026, including VND 1,736 billion in unlisted bonds.
• DSE’s Q1 2026 pre-tax profit fell 79% year-on-year to VND 14 billion.
• DSE’s operating costs surged 120% to nearly VND 300 billion, driven by provisions for financial assets, bad debt handling, and brokerage expenses.
• PSI reported a pre-tax profit of VND 32 billion, 3.2 times higher than Q1 2025.
• TVSI turned profitable with a VND 6 billion pre-tax profit versus a VND 21 billion loss in Q1 2025.

What Happened

Multiple securities companies released their Q1 2026 financial results on April 20, 2026, with HDS leading in profit growth. According to its filing, HDS achieved operating revenue of nearly VND 461 billion, supported by a VND 358 billion gain from FVTPL assets, which more than doubled from the previous year. Operating costs rose 30% to VND 125 billion, resulting in a pre-tax profit exceeding VND 352 billion. The company’s FVTPL portfolio, valued at VND 1,942 billion, is heavily weighted toward unlisted bonds.

In contrast, DSE experienced a significant profit decline. Its financial statement shows pre-tax profit dropped 79% to VND 14 billion, primarily due to a 120% increase in operating costs to nearly VND 300 billion. This spike included VND 123 billion in provisions for financial assets and bad debts, plus VND 138 billion in brokerage expenses. Other firms like PSI and TVSI showed improved results, with PSI’s profit multiplying and TVSI shifting from loss to profit.

Market Context

HDS trades on the Hồ Chí Minh Stock Exchange (HOSE) and is part of a securities sector that has seen volatile performance amid market fluctuations. The divergence between HDS’s strong gains and DSE’s sharp decline reflects varying exposures to asset management and cost structures. As of April 20, 37 securities firms have reported Q1 2026 results, indicating a mixed landscape where some benefit from financial asset appreciation while others grapple with rising operational burdens.

Strategic Significance

The results underscore the importance of asset management strategies in driving profitability for Vietnamese securities firms. HDS’s reliance on FVTPL gains, particularly from unlisted bonds, highlights a high-return but potentially risky approach that paid off in Q1. For DSE, the profit drop signals challenges in cost control and risk provisioning, which could pressure margins if sustained. Investors should assess firms based on their ability to balance revenue diversification with cost efficiency in a competitive market.

What to Watch

• Full-year 2026 earnings guidance from HDS and DSE to confirm if Q1 trends persist.
• Regulatory updates on bond market liquidity and valuation practices affecting FVTPL assets.
• Cost management initiatives at DSE to address the surge in operating expenses.
• Sector-wide performance data as more securities firms release Q1 results.
• Foreign ownership changes in response to these earnings announcements.