Hanoi (VNS/VNA) - VNDirect Securities Corporation (VNDS) expects itspost-tax profit to grow 31 percent year on year in 2019 to 487 billion VND (20.9million USD), attendees heard at the firm’s annual shareholder meeting on April18.

According to Pham Minh Huong, chairwoman of VNDS board of directors and generaldirector, total revenue is forecast to grow one-tenth to nearly 1.8 trillionVND.

In the first quarter of the year, VNDS estimated its post-tax profit was 102billion VND, equal to 21 percent of the full-year figure.

In 2019, Vietnam’s economic growth will slow down after having gained strongly inthe previous two years, Huong told the meeting.

Total gross domestic product (GDP) growth is estimated at 6.6 percent, which isin line with the market expectations and lower than the Government’s target of6.8 percent.

The Vietnamese Dong will depreciate by 2 percent this year,dragged by internal factors, while export turnover growth is forecast todecline, she added.

But the 2 percent depreciation is considered soft, Huong said, as “pressuresfrom international markets will ease because of a more dovish Fed approach (forinterest rate hikes).”

Major challenges for the Vietnamese economy in 2019 include the runaway offoreign capital from emerging markets and risky assets on worries aboutgeo-political disruptions and trade tensions, she added.

Meanwhile, cautious management of fiscal policy and stagnant equitisation ofState-owned enterprises may worry investors about the economic growth andstructure in the long run, Huong said.

Cautious earnings targets were set after the company recorded lower post-taxprofit in 2018 due to the market slump since April 9, 2018.

In 2018, VNDS recorded 1.63 trillion VND in total revenue, up 30 percent yearon year, and 373 billion VND in post-tax profit, down 22 percent year on year.

At the meeting, the company also planned to pay 104.3 billion VND worth ofdividend payout. It also wanted to issue 55.11 million shares, worth 551.1billion VND, to current shareholders to increase its capital.

VNDS also planned to sell 66 million shares in a private deal to seek potentialshareholders that can provide financial and technical support for the companyand increase its capital.

The company is listing 220.4 million shares on the Ho Chi Minh StockExchange under code VND. The company shares ended flat on April 18.-VNS/VNA