UOB Kay Hian seeks young clients

UOB Kay Hian seeks young clients

SET-listed UOB Kay Hian Securities (Thailand) Plc (UOBKH) plans to focus on investment banking and expand its customer base to the younger generation.

Chief executive Chaipat Nakmontanakom said the company had played a more active role in investment banking since last year, when it served as co-underwriter for five initial public offerings and as financial adviser for four companies seeking funding sources.

The brokerage plans to be the financial adviser and lead underwriter for two companies engaged in energy and construction as they seek a listing on the SET in the second quarter and co-underwriter for four companies going public this year.

Despite the intensifying competition in the securities brokerage business, the company has no policy for headhunting the marketing teams of rivals.

Mr Chaipat said the firm would attract novice investors, especially younger clients.

"We are not interested in a price war, so the company in 2014 still saw revenue and profit even as the overall market grew at a slower pace than in 2013," he said.

UOB Kay Hian's revenue and net profit for 2014 are expected to have declined on the previous year due to a nearly 50% plunge in trading value.

Revenue in 2013 totalled 1.2 billion baht for a net profit of 384 million.

UOB Kay Hian has a market share of about 2% with its 20,000 trading accounts, of which 14,000 are active.

Of the total accounts, 70% are retail investors, 20% institutional investors and 10% foreign investors.

The company has joined with Assumption University to set up a cyber learning centre and provide seminars about online trading, technical and fundamental trading, market movements and special training in securities trading.

"For this project, the company will have an opportunity to access new investors and potential marketing officers," Mr Chaipat said.

"The company has recruited 80-90 new marketing staffers over the past two years from projects like this."

UOBKH shares closed yesterday on the SET at 3.78 baht, unchanged, in light trade worth 74,000 baht.

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