Phatra Securities is crowned Best Securities Company of the year 2019.
An overview of the securities business in 2561, according to the annual report of the Securities and Exchange Commission (SEC), reveals that the securities brokerage business in 2561 remained unchanged from the previous year. It consisted of 39 businesses primarily engaged in securities brokerage and 4 businesses engaged in other types of securities business.
Overview of the development of the securities brokerage industry in the past year Trends in commission rates calculated based on transaction volume. (Transaction-based) continues to decrease. Many securities companies therefore have expanded their business operations to focus on fees from services (fee-based) in order to reduce the proportion of reliance on brokerage income.
Especially the business of creating wealth for investors (Wealth Creation), as evidenced by the fact that there are 5 securities companies participating in the 7 Steps to Be Confident in Investing project, providing investment design services with investment units through the channels of investment advisors. and online services with the FundConnext system developed by the Stock Exchange of Thailand It is an infrastructure to connect securities companies and investment management companies more conveniently. There are securities companies providing brokerage services for buying and selling investment units. (Distributor) of 10 companies. Statistics show that securities brokerage business operators had income from providing mutual fund trading services increased by 181 million baht, an increase of 16% compared to the previous year, in line with the direction of the business. Manage the fund as a whole and is expected to continue to grow
In terms of providing foreign investment services (Foreign Investment Aboard) in the past year The volume of requests for credit lines to take investors to invest abroad continues to expand. This increased to US$401 million, a 36% increase from the previous year. It shows the opportunity for securities companies to fulfill the needs of investors to diversify risk and returns.
There are factors that help enhance the efficiency of securities companies' services: Allowing securities companies to buy or sell or exchange foreign currency for investing in instruments and derivatives. There are already 10 securities companies licensed (Fx License).
In addition, issuing and offering for sale or servicing complex products (Complex Product) has the opportunity to generate high returns and be able to make a profit during severe market fluctuations, both positively and negatively. Especially products in the category of Derivative Warrants. In 2561, there were 2 more service providers, with an additional 600 securities being issued and offered for sale.
While the average daily trading value grew to 74%, the proportion of trading compared to the trading of securities in the entire market increased to 7.6%. The product that made a profit in a down market, namely Put DW, increased in popularity to 40%. very much Until the trading proportion was XNUMX% of the total derivative warrant trading volume.
Commission fees continue to reduce
Volume of retail investors is weak.
As for the overall structure of the market share of the securities brokerage business in 2561, the market share of the top 10 groups was at 50.3%, increasing only slightly from the previous year at 48.6%.
For the overall operating results and financial position of the industry, it was found that Brokerage income, which is the main income of the securities business, increased by only 351 million baht, or an increase of 1% from the previous year, which is not consistent with the average daily securities trading volume that increased by 15% from the previous year, or 57,664%. at the level of XNUMX million baht per day This reflects the commission fee for securities trading that continues to decrease.
In terms of comprehensive profits of the securities business, it decreased by 731 million baht, a decrease of 8.1% compared to the previous year. Meanwhile, the industry as a whole had a total asset value of 355,517 million baht, an increase of 9% compared to the previous year.
Securities trading section Retail investors are still the investor group with the highest trading volume compared to other investor groups, but the proportion tends to decrease. In the past year, the trading proportion of investors Retail traders dropped to 41% of total trading volume, down from 48% a year earlier.
The proportion of foreign investors increased to 37% from 30% in the previous year and in 2561, the total amount of margin loans decreased to 56,994 million baht or decreased. Down 189% from the previous year. The total value of the collateral is 186,908 million baht, or approximately 3.28 times the total loan value.
The reason for the decrease in loans was partly due to the Stock Exchange Index (SET Index) which dropped from the previous year, closing at 1,564 points or decreasing 11% due to the global economic slowdown.
In terms of stability of securities companies If considering the net liquid capital fund, it is found that All securities companies were able to maintain net liquid capital much higher than the minimum criteria. At the end of 2561, the industry's average net liquid capital level per company rose to 2,154 million baht, an increase. 0.8%
Meanwhile, the average net liquid capital ratio to general debt and assets that must be placed as collateral (Net Capital Ratio) per additional person was 86%.
According to a report from the Association of Securities Companies of Thailand ( ASCO) , as of the end of 2561, securities companies had a total of 563 branches, a decrease of 24 branches compared to the previous year. Of these, 261 branches were in Bangkok and its surrounding areas, while 302 branches were in other provinces.
while the number of personnel registered and performing duties This includes both Securities and Derivatives, including Analysts with 376 persons, a decrease of 2 persons, and Investment Consultants, excluding IC Complex, with the number of 6,787 persons, a decrease of 786 persons. One personnel may be registered in more than one area.
In terms of the average securities trading fee rate (Commission Rate) for the entire industry in 2561, the average is 0.08% and if Proprietary Trading is not included, it will be at 0.10%. The retail investor group has an average fee. At 0.12%, domestic institutional investors averaged 0.16% and foreign investors averaged 0.05%.
Phatra Securities is the champion.
BroIBest Securities Company of the Year 2562
The ranking of the Best Securities Company of the Year 2019, as selected by the Financial Banking Journal, recognizes top securities companies with strong potential and business capabilities based on their performance in 2018. A total of 39 securities companies that are members of the Stock Exchange of Thailand were chosen. The Best Securities Company of the Year 2019 is Phatra Securities Public Company Limited (PHATRA) , Stock Exchange of Thailand member number 6.
with an overall picture of outstanding operating results With the highest revenue in the industry at 1 million baht, while a net profit of 3,548.92 million baht, which is also the highest, it reflects the potential of the company amidst the highly competitive securities industry.
In 2561, Phatra Securities had a market share of securities brokerage ranked 7th, or a market share of 4.55% of the total securities trading value. (excluding the company's securities trading accounts) of the Stock Exchange and the MAI market
The total securities brokerage income was 1,149.63 million baht. The proportion of securities brokerage income from institutional customers and large individual customers accounted for approximately 59.42% and 40.58% respectively. Securities brokerage income from institutional customers was approximately 61.23% and XNUMX% respectively. Of Phatra Securities, XNUMX% came from domestic institutional clients, which are Asset Management Company provident fund Private funds Government Pension Fund Social Security Office life insurance company and insurance companies
As of December 31, 2561, Phatra Securities had 41 domestic institutional clients who traded securities through Phatra Securities at least once in a one-year period.
In terms of securities brokerage income from foreign institutional clients of Phatra Securities, it is 38.77%, of which 57.63% is income from Merrill Lynch according to the business cooperation agreement between the securities company. Phat and Merrill Lynch
In addition, Phatra Securities also received income from brokerage fees for trading derivatives from institutional clients both domestic and foreign in the amount of 76.18 million baht and income from fees from securities borrowing and lending in the amount of 22.64 million baht in 2561. L.Phat also provides financial planning and personal investment services.
For Mass Affluent customers, which are groups with investments ranging from 2 - 30 million baht through the online investor system. and staff providing personal financial planning advice under the Phatra Edge brand. At the end of 2561, Phatra Securities had assets under investment advice for individual clients totaling 474,967 million baht, with accounts Total personal customers: 16,818 accounts
Issues analysis covering 75% of stocks
A business IB grows strongly
As for securities brokerage services, Phatra Securities has a research line that provides investment advice and securities trading guidelines to clients. It presents both macroeconomic analysis and securities analysis. There are a total of 10 analysts covering securities of 86 listed companies, accounting for 74.5% of the market capitalization of the Stock Exchange.
Under a collaborative research contract between Phatra Securities and Merrill Lynch, Phatra Securities analysts will conduct research on Thailand's economics and politics. Investment strategies and securities analysis of companies listed on the stock exchange. Merrill Lynch will distribute such research to Merrill Lynch clients overseas under the name of Merrill. Rill Lynch, while Phatra Securities will publish research on the world economy and regional economies. as well as foreign securities analysis by Merrill Lynch for clients of Phatra Securities in Thailand.
In terms of investment banking business, Phatra Securities is one of the leaders in providing investment banking services in Thailand. Although the current market is more competitive, Phatra Securities continues to be a leader in providing advice on acquisitions and mergers by large companies. Financial restructuring of large companies and provide advice on issuing various financial instruments
In 2561, Phatra Securities was selected to be a financial advisor to PTT Public Company Limited, BTS Group Holdings Public Company Limited, Advanced Info Service Company Limited ( Public Company Limited, Advanced Wireless Network Company Limited, Berli Jucker Public Company Limited and Dusit Thani Public Company Limited, representing a total transaction value of more than 33,000 million baht.
For capital market transactions in 2561, Phatra Securities helped clients raise funds through the stock exchange. Representing a total transaction value of more than 80,000 million baht, Phatra Securities has been appointed as a financial advisor and underwriter for investment units of the Thailand Future Infrastructure Fund (TFFIF). Distribute securities of Osotspa Public Company Limited and Praram XNUMX Hospital Public Company Limited in the offering of shares. common to the general public for the first time It is also the underwriter for the overnight offering of common shares to limited shareholders (Overnight Placement) of Land and Houses Public Company Limited, Osotspa Public Company Limited, Beauty Community Company Limited. Nity Public Company Limited and Sabina Public Company Limited
Meanwhile, the debt instrument distribution service has continuously grown in performance from last year. In 2561, Phatra Securities distributed a total of 25 debt instruments throughout the year, with a total transaction value of more than 196,000 million. baht
How to analyze rankings
The Best Securities Company of the Year 2562 ranking is an analysis of data on securities companies that are member companies of the Stock Exchange of Thailand. There are a total of 2019 companies using data as of the end of 39. For the ranking method, Academic Department, Finance and Banking Journal. International standard criteria are used to reflect the overall efficiency of the securities company's business operations. Measured by 2561 factors as follows:
