Country Group Securities targets 20% rise in investors

Country Group Securities targets 20% rise in investors

Country Group Securities Plc (CGS) expects to maintain its top-three ranking among brokerages this year and increase its new-investor base by 20%.

The broker projects the SET index will reach 1,680 points this year.

CGS is also looking for new partners to increase its market share and increase competitiveness.

It also hopes to see its profit rise in line with the jump in daily trading value on the SET in this first quarter.

"As of March 14, we had a 5.93% market share, ranked second behind Maybank Kim Eng Securities at 12.8%. We expect our market share will rise to 6% in 2013," said chief executive Prasit Srisuwan.

The brokerage's trading portfolio is valued at 625 million baht _ 500 million in long-term investment and 125 million in short-term trading. It expects to make a good investment return this quarter.

CGS is confident the bullish stock market in the first quarter will drive revenue and profits by more than its 10% growth projection. So far, the average daily market trade of 58.2 billion baht has doubled from last year.

It will aggressively boost its investment banking business by hiring more staff and paying them more.

"We offer profit sharing of 30-40% of total advisory fees to our three investment banking teams, which can bring new companies to list on the bourse," Mr Prasit said.

CGS expects to help list 6-8 companies this year. It now has 10 potential firms in the pipeline.

The broker will increase its margin loan portfolio by 1.8 billion baht if the market continues to be active this year.

Derivative warrants and other products will be introduced to cover all segments of the securities business, he said.

CGS has 60,000 trading accounts, of which 20,000 are active and 80% are retail investors. It plans to increase the number of new accounts by 20% this year.

Its brokerage business remains a core revenue generator at 80% of the total. Its commission fees are 0.15% to 0.17%.

CGS posted a net profit of 312 million baht last year, up by 22.7% from 2011.

Shares of CGS closed on the Stock Exchange of Thailand at 2.32 baht on Friday, up 21.47% or 41 satang, in trade worth 1.81 billion baht.

Do you like the content of this article?
COMMENT