Bualuang Securities wins the title of Best Securities Company of the Year 2020

An overview of the Thai securities business in 2562, according to the annual report of the Securities and Exchange Commission (SEC), reveals that the overall trend in the securities brokerage industry in 2562 showed a continued decline in transaction-based commission rates. Therefore, many securities firms expanded their operations to focus on fee-based income to reduce their reliance on brokerage fees.

Underwrite/sell funds
The main business creates Fee-Base
Especially the business of being a securities distributor. Revenue increased by 820 million baht or an increase of 59% compared to the previous year. This is caused by the initial public offering of securities (IPO) in 2562, representing an increase in value from the previous year of 68,075 million baht, or an increase of 155% compared to the previous year. Especially after September, there were IPOs of large stocks and Real Estate Investment Trusts (REITs), which accounted for 80% of the entire year's offering value.

And another interesting business is Providing mutual fund unit trading services that increased income by 232 million baht or an increase of 18% compared to the previous year. In line with the overall direction of the fund management business. and is expected to continue to grow

In terms of providing investment services abroad In the past year The volume of requests for credit lines to take investors to invest abroad continues to expand. This increased to 876 million US dollars. or an increase of 58% compared to the previous year. It shows the opportunity for securities companies to fulfill investors' needs for diversification of risk and returns.

There are factors that help to make securities companies' services more efficient, namely allowing securities companies to buy or sell or exchange foreign currency for investment in instruments and derivatives. There are 11 securities companies that have received Fx licenses, which is an increase of 1 company from 2561.

In addition, issuing and offering for sale or servicing complex products It has the opportunity to generate high returns and be able to make a profit during severe market fluctuations, both positive and negative. In particular, derivative warrant products in 2562 saw an increase of 1 service provider (totaling 15), an additional 1,054 issues were issued and offered for sale, and the average daily trading value grew by 52 percent, resulting in The proportion of trading compared to the entire market rose to 11.6% from 7.1%.

In the overview of the market share structure of the securities brokerage business in 2562, the market share of the 10 groups The first rank was at 55.3%, an increase from last year's 50.3%, which was due to the increased market share of large business operators that mainly serve foreign investors.

The Thai stock market is sluggish.
Commissions shrink
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, decreased by 4,320 million baht or 15.7% compared to the previous year and the average daily securities trading volume decreased 7.8% from the previous year (at the level of 53,192 million. baht per day) reflects the challenges of operating a securities brokerage business. Especially business operators who focus on small investors. Last year, income from investors in this group decreased by 3,335 million baht, or 20.3% compared to the previous year.

In terms of total comprehensive income of the securities business, it decreased by 2,777 million baht or decreased by 34.1% compared to the previous year. As for the overall industry, there was a total asset value of 349,851 million baht, or a decrease of 1.55% compared to the previous year.

While trading securities The proportion of retail investors tends to decrease, reaching 2562% of total trading volume in 34 from 41% in 2561. The proportion of foreign investors increased to 41% from 36% in 2561.

And the total amount of margin loans increased to 60,470 million baht, or an increase of 6.1 percent compared to the previous year. The total value of the collateral is 211, 960 million baht, or approximately 3.50 times the total loan value. The reason for the increase in loans is partly due to some business operators focusing on expanding their business in this area. Including the stock market index which increased from the previous year by closing at 1,580 points or an increase of 1.02% compared to the previous year.

For the situation of net liquid capital funds All securities companies were able to maintain net liquid capital much higher than the minimum criteria. At the end of 2562, the industry's average net liquid capital level per company dropped to 2,045 million baht, or decreased. 4.9% compared to the previous year Meanwhile, the average net liquid capital ratio to general liabilities and assets required to be placed as collateral (Net Capital Ratio) per person decreased to 78%, or decreased 7.5% compared to the previous year.

According to data from the Association of Securities Companies of Thailand (ASCO) , in 2562, brokerage firms had a total of 511 branches, a decrease of 52 branches. This included 237 branches in Bangkok and its surrounding areas, and 274 branches in other provinces.

In terms of the number of personnel registered and performing the duties of Investment Planner (IP) and Investment Consultant (IC) in 2562, there were a total of 10,250 licenses, a decrease of 805 licenses from the previous year. As for IC, according to the original structure, there were 7,984 licenses. Reduced by 1,743 licenses due in part to moving to register as IP and IC according to the new license structure.

While the IP section increased by 101 licenses and the total IC Complex of all types increased by 837 licenses and is likely to continue increasing in the future. Analyst (excluding Technical) had 426 licenses, a decrease of 12 licenses.

As for the average securities trading commission rate for the entire industry in 2562 (not including Proprietary Trading) at 0.09%, a decrease of 0.01% compared to the previous year.

Bualuang Securities wins the championship
Best Securities Company of the Year
for ranking Best Securities Company of the Year 2563 (Best Securities Company of the Year 2020) ของ Journal of Finance and Banking It is an analysis of operating results of securities companies that are members of the Stock Exchange of Thailand at the end of 2562, with a total of 39 companies, which Bualuang Securities Public Company Limited was crowned Best Securities Company of the Year 2563.

With outstanding performance Able to generate the highest net profit in the industry, totaling 1 million baht, has the second highest earnings per share at 1,009.78 baht, has a return on capital (ROE) of 2% and a rate of return on assets (ROA) of 0.93%.

Chu “Education-Innovation”
Support business success
bank finance Got an interview Mr. Phichet Sithi-Amnuay, Executive Committee Member Bualuang Securities CompanyPublic Company Limited An overview of the company's operations is that throughout the past 10 years, the company has always emphasized the importance of education and innovation in order to encourage customers to become quality investors. There has been a change in the service format of Bualuang Securities according to the learning curve of investors. It has evolved from a trading room to a classroom. and the classroom is an online classroom respectively

For the past year 2562, we admit that it was a tough year for the securities business. With the economic growth slowing down As a result, the average trading value of securities on the Thai Stock Exchange is only 53,000 million baht per day. Decreased compared to 2561 with the value of securities trading The average is 57,000 million baht per day. The company has a market share of 4.23%.

However, with different commission fees for each broker, Market Share alone does not reflect the ability to conduct business. Many components must be considered. Currently, the industry's commission over the past 2 years has averaged at 0.09% per time, starting to stabilize from the original decrease of 0.01% per year. In the TFEX business, the company has a Market Share of 5.68%.

Meanwhile, the Investment Banking business last year generated revenue of 687 million baht or 19% of total revenue. Increased compared to 2561 where the revenue proportion was only 10%. The company was able to list the company on the stock exchange. such as Veranda Resort Public Company Limited (VRANDA), Index Living Mall Public Company Limited (ILM), Asset World Corp. Public Company Limited (AWC) and additional capital shares of Jasmine Broadband Internet Infrastructure Fund (JASIF), etc.

from a decrease in income from the securities business was replenished with income from the investment banking business, resulting in 2562 net profit of Bualuang Securities at 1,010 million baht, relatively stable when compared to net profit in 2561 at 1,017 million baht.

For the behavior of investors today Mr. Pichet added that Most investors have adjusted their behavior to online services quite a lot. This can be seen from the proportion of Bualuang Securities customers who trade online, which is higher than 90%. It is seen that the change in customers using online services is mainly due to changing lifestyles rather than lower commission fees. which customers want more convenience according to the changing era

The customer group that the company focuses on serving is therefore the medium sized customer group. who want to listen to investment advice from Bualuang Securities and want to use the tools provided. We are a Premium Broker, not a Discount Broker.

At the same time, the proportion of the investor base has also changed. Previously there were only investors aged 40 years and over, now we are beginning to see investors between the ages of 20-30 continue to increase. In addition, investors have knowledge. Complexity and requires more information Want to know the reasons that support investing in each stock?

The most obvious thing is During the spread of the COVID-19 virus That caused stock markets around the world to fall sharply. There are many customers opening new accounts and more active accounts, which reflects that people are beginning to have a certain level of understanding of the stock market. Therefore dare to invest in this situation.

“The company has been able to attract quite a lot of people to use its services. It is seen that the main reason is that we have strengths that are ready to provide information fully. and customers believe in our research Meanwhile We also have tools to help you invest, such as Trade Master, which has quite outstanding functions. and is continuously developed The goal is to allow customers to invest as efficiently as possible.”

However, although the proportion of online customers exceeds 90% of the total, the company has no plans to reduce branches or lay off employees. Because we are a financial institution A branch is required for inquiries. It is also a source of trust for customers.

And in the marketing section that exists now It has been changed to take care of investors who are medium level and above. and ready to provide advice on all investment products such as debt instruments, foreign deposit rights instruments (DR), and direct foreign investment services (Global Investing), etc.

This is despite the fact that all Global Investing brokers use similar platforms. But where the company is different is data. We select only foreign stocks that are assessed to have outstanding growth trends. and has a business nature that is easy to understand In order for investors to spend as little time digesting information as possible, the company currently has approximately 3,000 customer accounts in this section.

For the overall picture of the company in the first half of 2563, Mr. Pichet revealed that The spread of the COVID-19 virus It is considered to have a positive business impact on the securities business that has been switching to online systems for a long time. However, there is still some operational impact, but compared to other industries. It is considered that the company has received relatively little impact.

In addition, the number of securities trading values ​​per day has increased. which has a positive effect on the securities business Meanwhile, the TFEX business has been affected. This is because in a highly volatile market environment, risk management is quite difficult and there are fewer people investing in Block Trade.

The investment banking business was also negatively affected in the first half of the year. Because of the deals It has been postponed until the capital market situation improves. It is expected that we will start to see deals listed on the stock exchange. In the second half of this year

Recently, the company has changed the classroom. It's an online classroom. Adjusted from the original seminar to an online streaming format Increase convenience for investors, Invest From Home, reduce travel expenses. And investors can choose to listen only to the period of interest. There is also a system that allows customers to ask and answer questions in real time with a team of professionals giving personal advice. In addition, the number of seminar visitors can be increased many times. Meanwhile It can help reduce costs as well.

While the overall picture of the securities business in the second half of this year It will mainly depend on the volatility of the capital market. If the market picture is still volatile. People come to invest vigorously. The securities business is still doing well. But if the second half of the year has low volatility The situation is clear. The trading value on the stock exchange is decreasing, and the post-sap business has less income as well. But I think that the overall business this year will be better than last year.

For future operational plans Pichet added that The main principle remains the same, emphasizing Education-Innovation, but there will be more online seminars. which will improve the service here more How to serve customers better? and increase the capacity (Capacity) of online tools Additional IP improvements have been made. Originally, we were not prepared to support 100% of our customers.

In addition, we are beginning to see post-COVID behavior change (New Normal). It is seen that working from home will be a part of work in the future. Therefore, there is a plan to increase the efficiency of employees' working at home. Both in supporting changes in the rules of the Regulators and increasing the efficiency of communication between employees, supervisors and the company, including using office space in the most cost-effective way.

“Even now the company has relaxed measures to reduce the spread of infection. We have begun to allow approximately 60-70% of our employees to return to work, but we have measures in place to prepare for the second wave of the virus and have changed employee work hours to Flexible to avoid crowded travel.”

In addition, for strategies for investing in the stock market during this period. It is seen that the main factor affecting the stock market is the amount of money in the system that flows into risky assets. Even though the security price has increased to the point where the valuation is quite high, Therefore, catching the right time to invest is important. Use the Selective Buy investment strategy and recommend investing with caution. Ready to enter and exit at all times.

The factor that must be further monitored is the spread of the COVID-19 virus. Whether there will be a second round of the outbreak or not If there is a second round of outbreak We need to evaluate how heavy it will be. And when will the vaccine come? In addition, domestic factors include the stability of the government.

Journal of Finance and Banking The criteria for consideration that are international standards have been used. This will reflect the overall efficiency of the securities company's business operations. Measured by 3 factors as follows:

Factor 1 : Size of the Firm

• Assets
• Shareholders' Equity (Equity)
• Registered capital (Paid-up Capital)

Factor 2: Ability to generate profit.

• Total income (Revenue)
• Net Profit
• Earnings per Share (EPS)

The third factor is return on investment.

• Return on Equity : ROE
• Return on Asset : ROA