Holding VIX stock (HM: VIX) in the securities trading portfolio helps most companies make profits, even large profits. The case of MHC is a typical example. MHC Corporation (Code MHC – HOSE) – a small-time securities investment company has just had another successful third quarter with after-tax profit of VND40.3 billion – 2.7 times higher than the same period. Revenue this period reached VND118 billion – 5.8 times higher than the third quarter of last year.
As a pure transportation business, MHC's profits in recent quarters have mainly come from investment interest in the stock market (Q3/2023 recorded financial revenue doubling to VND 74 billion).
At the end of September, the company's securities portfolio was worth VND245 billion - equal to VND28.71 trillion of total assets.
In Q3, MHC sold half of its original investment portfolio (down from VND513 billion at the end of Q2) as some key stocks began to show corrections. EIB was the stock that was sold for nearly half its value, its original price dropped to VND160 billion (at the end of September, it was temporarily making a profit of VND5%).
Similarly, the investment in VIX Securities and GEX (HM:GEX) (Gelex Group) shares was also sold at a reduced proportion, the original investment price was 49 billion and 25 billion VND (temporarily earning 71% and 9% at the end of the third quarter).
In the first 9 months of the year, MHC recorded net revenue of VND 127 billion - 4.3 times higher than the same period in 2022; net profit reached VND 50 billion while in the same period, it lost VND 43 billion. This result helped the company far exceed the profit plan for the whole year.
However, over-reliance on interest from stock investments may make MHC's profit prospects uncertain. Eximbank (HM:EIB) shares have been moving sideways since the beginning of October, mostly in the 18.0 price range. Meanwhile, more positive signs have appeared in the GEX - VIX pair, as the two stocks have been showing a strong recovery of 20 - 35% in the past 2 weeks.
