TOPIC THE SURVEY OF SECURITIES BROKERAGE SERVICE OF MAYBANK KIM ENG COMPANY

INTERNSHIP REPORT...1TOPIC:THE SURVEY OF SECURITIES BROKERAGE SERVICE OF MAYBANK KIM ENG COMPANY...1 INTRODUCTION...4 CHAPTER 1: GENERAL INFORMATION ABOUT THE MAYBANK KIMENG’S COMPANY...

DEPARTMENTOF INTERNATIONAL BUSINESS ADMINISTRATION

SERVICE OF MAYBANK KIM ENG COMPANY

Student’s name: PHAN THI NGOC TRAN

ID Number: 14DH490724 Class: KQ1404

Instructor: NGUYEN ANH TUAN

HCMC, 28/05/2018

INTERNSHIP REPORT 1

TOPIC:THE SURVEY OF SECURITIES BROKERAGE SERVICE OF MAYBANK KIM ENG COMPANY 1

INTRODUCTION 4

CHAPTER 1: GENERAL INFORMATION ABOUT THE MAYBANK KIMENG’S COMPANY 5

1.1 Company overview 5

1.1.1

Maybank Kim Eng Corporation 5

1.1.2

Maybank Kim Eng Securities Limited (Maybank Kim Eng Việt Nam) 5

1.2 The organizational structure, person structure and function and duties of the company 8

1.2.1

The organizational structure of Maybank-Kim Eng Company 8

1.2.2

The function and duties of MBKE 11

1.2.3

The personnel structure of company 13

1.3 The financial statement of the company in three years 13

1.3.1

Analyze the financial result of the company in 3 year 13

1.3.2

The financial statement in 2016 of Maybank Kim Eng Company 15

1.4 Evaluate of the financial result 16

CHAPTER 2: THE SURVEY OF SECURITIES BROKERAGE SERVICE OF MAYBANK KIM ENG COMPANY 19

2.1 The steps to open a securities trading account 19

2.1.1

Domestic customer 19

2.1.2

Foreign customer 21

2.2 The situation of securities brokerage service of Maybank Kim Eng in 3 years 23

2.2.1

The business situation of securities brokerage service in 2017 23

2.2.2

The business results of service in 2016 25

2.3 The evaluation of the strengths and weakness of the brokerage service 28

2.3.1

The strengths of the brokerage service 28

2.3.2

The weakness of the brokerage service 28

3.1 The orientation of the company and business plan in 2018 29

3.1.1

The orientation of company 29

3.1.2

The business plan of company in 2018 30

3.2 The opportunity and challenge for the company and brokerage service 30

3.2.1

The opportunity and challenge for the company 30

3.2.2

The opportunity and challenge for brokerage service 31

3.3 The solution of securities brokerage service 32

RECOMMENDATION 32

CONCLUSION 32

APPENDIX 33

REFERENCE 33

At present, Vietnam's economy is gradually integrating into the world economy InVietnam, the market economy is more developed, creative and creative After nearly

30 years of renovation, the market economy in Vietnam has been gradually forming amodern market economy According to the General Statistics Office, GDP (GDP) in

2017 is estimated to be 6.81% compared to 2016 We can consider GDP and percapita income of the country Why Vietnam's economy has grown dramatically inrecent years The author poses the question of why the Vietnamese economy hasexploded in recent years, and the author has studied and found that the Vietnamesemarket is one of the potential markets in developing and emerging countries attractingthe attention of many foreign investors such as real estate, tourism In addition, thestock market in Vietnam is also a potential stock market attracting many domestic andforeign investors Vietnam stock market in 2017 has exceeded the historical milestoneand is highly appreciated by experts for its ability to grow for many years It bringsmany benefits to investors in knowledge of the market domestically andinternationally and to help investors make a profit for themselves In addition to thesebenefits, investors have had trouble predicting and investing stocks To help peoplebetter understand the stock market, the author searches for securities companies inVietnam with good securities services so that people can invest in securities easily andearn a lot of profits

A completed study will not be conducted without any assistance Therefore, the authorwho made this study is very grateful for their support and motivation during thisstudy First of all, I would like to express my gratitude and endless gratitude toBrokerage Manager Kim Thien Tan Due to his support and create the best conditionfor the author to finish his report Besides, the author also would like to thank thecompany in the company for help and guidance during the author's research Theauthor would like to thank HUFLIT University for creating the conditions for theauthor to study at the university Finally, the author would like to express his deepgratitude to our instructor Nguyen Anh Tuan for following up and guiding theresearch papers during the internship period and for making the report.

over-the-to imagine how much money you have made in a short time At present, manyVietnamese people instead of depositing their money into a savings bank for interest,they have to learn and invest in stocks with the probability of multiple times lucrativecompared with savings banks While you deposit your savings right up to the maturitydate you can withdraw money and spend on other jobs back in stock investments yourmoney will be more flexible and you can withdraw at any time you want before Youcan find out more about how to play securities online and find out more aboutsecurities companies in Vietnam That is, the author only talks about the simplebenefits that investing in stocks bring and make investors feel excited and interesting

in the investment And in Vietnam, there are many securities companies We are ready

to assist you in finding out and investing in securities market such as SSI SecuritiesCompany, HSC Securities Company, Bao Viet Securities Company but in which,Maybank Kim Eng has foreign investment and presence in many other countries inAsia while the other companies are only in Vietnam This report explores MaybankKim Eng Securities and reviews brokerage services provided to clients intending toparticipate in the stock market as well as many investors trusted in the professionalism

of Maybank Kim Eng

CHAPTER 1: GENERAL INFORMATION ABOUT THE MAYBANK

KIMENG’S COMPANY

1.1 Company overview

1.1.1 Maybank Kim Eng Corporation

Maybank Kim Eng is a wholly-owned subsidiary of Maybank, Asia'sleading banking group, with a network spanning 20 countries in terms oftotal asset size in Southeast Asia

Maybank Kim Eng has offices in Malaysia, Singapore, Thailand, HongKong, Vietnam, Indonesia, the Philippines, India, Saudi Arabia and theUnited Kingdom, including companies active in the securities and bankingsector Investments specializing in providing services on Corporate Finance,

Capital Markets, Debt, Derivatives and Brokerage.

1.2.1 Maybank Kim Eng Securities Limited (Maybank Kim Eng Việt Nam)Kim Eng Securities (MBKE or its parent company), formerly known as KimEng Vietnam Securities Joint Stock Company (KEVS), was incorporated underLicense No 71 / UBCK-GP dated 14 December 2007 of Kim Eng Securities(Vietnam) Limited State Securities Commission (SSC) and officially cameinto operation in April 2008

After Malaysian Financial Group Maybank acquired the entire stake of KimEng Holdings Limited, the Company was renamed Maybank Kim EngSecurities under the revised License No 105 / GPDC-UBCK dated August 10,2012

On January 3, 2014, MBKE was officially approved by the State SecuritiesCommission of a new form of ownership: Maybank Kim Eng SecuritiesCompany Limited under the Establishment and Operation License No 117 /GP-UBCK; The first 100% foreign capital in Vietnam

During 10 years of development in Vietnam, MBKE with it’s headquartering in

Ho Chi Minh City, 5 branches and nearly 200 employees officially By the end

of 2014, MBKE has raised capital from VND 300 billion to nearly VND 830billion (USD 15 million to USD 40 million) and is expected to raise its charter

capital to more than VND 1,000 billion (USD 50 million) 12/2017, investmentcapital of the owner is nearly 967 billion VND.

Specially, on 24/4/2018 Maybank Kim Eng increased charter capital to 1,056billion VND

The charter capital of the company through 2015-2018

❖ Cho Lon Branch

D7 Building (Tang 1), Tan Da Building, 86 Da Tan Street, Ward 11, District 5HCM

Tel: (028) 62 610 778 - Fax: (028) 38 59 06 99

+ Phu Nhuan branch

S6 456 Phan Xich Long, Ward 2, Phu Nhuan District, HCM

Tel: (028) 62 927 029 - Fax: (028) 62 927 019

❖ Dong Nai branch

Ski 249 Ha Huy Giap, Quarter 4, Phuong Quyet Thang, Bien Hoa, Dong

Deer

Tel: (0251) 39 40 490 - Fax: (0251) 39 40 499

❖ An Giang branch

Tang 3, Thuong Mai Nguyen Hue, 9/9 Tran Hung Dao street

My Xuyen, TP Long Xuyen, An Giang

Tel: (0296) 39 22 229 - Fax: (0296) 39 22 899

+ Ha Noi branch

Tang 3A-06, Horison Building, S6 40 Pho Cat Linh, Phuong Cat Linh, QuanDong Da, Ha Noi

Headquarter Floor 4A-15+16, Vincom Center Đong Khoi, 72 Le

Thanh Tong street, Ben Nghe Ward, District 1, HCM City

1.2.1 The organizational structure of Maybank-Kim Eng Company

Resource: Annual report in 2017The functions and duties of each department of Maybank Securities CompanyLimited Kim Eng- Cho Lon Branch

 Branch manager

Owner Council member

Chairman

Control board

Secretary member Internal audit

Institutional brokerage department

Foreignaffairs office Human resource

department

Analysis department

Develop product room

Customer care room

- Plan and organize the operation of the branch

- Propose policy changes and procedures within the branch

- Sign the relevant documents under its authority

- Build and develop relationships within and outside the branch

- Manage personnel and assign appropriate work to employees

- Supervise recruitment process and personnel training at the branch

- Ensure discipline of branch staff according to regulations

- Regularly assess the effectiveness and productivity of the employee fromwhich they propose a reward

- Organize regular meetings to evaluate the work to set the direction ofactivities

 Brokerage Department

- Searching for clients to open securities trading accounts

- Advising clients on procedures and conditions for trading securities of thecompany, requesting customers to fill in information and provide necessarydocumentation

- Providing basic transactional services for independent investors

- Manage separate accounts for investors who need to use their own tradingspecialists

- Evaluate the market; analyze the financial indicators of the business to makerecommendations to customers

- Professional guidance for new employees when required by the higher level

- Voluntarily participate in training courses and enhance professional skillsorganized by MBKE

 Administrative offices

- Includes 1 administrative staff, 1 support staff from IT department

- Receive account opening documents from the broker and enter the system inaccordance with the process of MBKE

- Management, archiving records as prescribed by MBKE

- Keep confidential documents and information of customers in accordancewith the regulations of MBKE

- Carefully manage the forms used in transactions, not to miss the sample, lacksample.

Additional tasks required on request

- In the course of work, if any difficulties or problems arise, they shallimmediately report such to the branch directors

 Information technology room

- Includes a technical staff (IT)

- Install application software for other employees

- System administration (server, computer, telephone, printer, photocopier,scanner )

- Solve all problems related to internal computer and fix problems when theproblem occurs on the official website of the company

Maybank Kim Eng Securities Co., Ltd is a dynamic and prestigious securitiescompany, meeting the needs of domestic and foreign customers through thefollowing services and products:

 Looking at the organizational structure of the company, the author foundthat the company has a very organized management, each departmenthas different tasks and help companies solve the problem as quickly aspossible have requests from customers

1.2.2 The function and duties of MBKE

 Securities brokerage, investment consulting

- MBKE is the first securities company in Vietnam to declare not employed, resolutely separate customers' deposits from the corporate account,ensuring the interests of customers are always top priority

self MBKE provides clients with tools to track market movements, charts of stockmarket performance, and stock market research

- Expert broker with deep knowledge of the stock market, many years ofexperience

- Directly advise stock investment for customers, continuously update and sendinformation about stock code of customers holding

 Analytical research

The company provides short, medium and long-term analysis for individualand institutional clients that are tailored to each specific investment strategy

- Market news is sent to customers after each trading day

- Facts and news affecting the stock market are analyzed and sent to thecustomer quickly through daily news or through a broker

- Analysis of business results of enterprises

- Collecting and analyzing financial indicators of listed companies, assessingthe profitability of stocks for investors' reference

- Organize company visits to customers in need

 Business Finance

- Equalization consultancy

o Support the transition to joint stock companies for enterprises (valuation

of enterprises, development of equalization plans, seeking strategicinvestors and offering shares )

- Determining the value of the enterprise:

o Identify the factors that create value to properly valuate your business,such as equity issuance, equalization, mergers, acquisitions, mergers andacquisitions

- Securities issuance consultancy:

o Propose capital mobilization solutions suitable to the real situation andbusiness strategies of enterprises (stocks, bonds or derivativeproducts )

o Make a plan for raising capital

o Find strategic shareholders

o Build strategy

o Search, select the appropriate market listing

o Establish and improve corporate governance

o Create a listing

o Make roadshows to introduce stocks to the public

- Consulting strategic partner, M & A:

o Build a strategy for accessing and evaluating opportunities

1.2.3 The personnel structure of company

Table 1.2.3: The number of employees in 3 years

2015 2016 2017Employees 210 173 168

Resource: Annual report of Maybank Kim Eng

0 50 100 150 200 250

2015 2016 2017

personnel structure (persons)

Resource: Annual report in 2017The number of employees in the company decreases over the years Although the number of employees decreased but did not affect the company's sales, the company focused on the quality of employees rather than quantity

1.3 The financial statement of the company in three years

1.3.1 Analyze the financial result of the company in 3 year

1.3.1.1 The financial statement in 2017 of Maybank Kim Eng SecuritiesLimited

Table 1.3.1.1: The business results in 3 years

Business results 2017 2016 FluctuationNet revenue 213.106.494.876 170.656.168.879 25%

Operation cost 98.412.340.816 79.541.958.777 24%

Profit before tax 50.309.812.245 29.650.092.223 70%

Profit after tax 40.011.435.030 23.409.292.940 71%

Resource: Financial report in 2017

Table 1.3.1.2: The asset and capital in 2 years

Accounting balance sheet 2017 2016

Total asset 1.430.731.925.304 988 988.171.654.534

Charter capital 829.110.000.000 829.110.000.000

Resource: Financial report in 2017

Table 1.3.1.3: The capital structure of the company in 2 years

Other targets 2017 2016

Property structure

Short-term assets/ Total assets 97,5% 96,5%

Long-term assets/Total assets 2,5% 3,5%

Capital structure

Liabilities must pay/ Total assets 3,24% 6,24%

Liabilities must pay/ Equity 4,8% 6,65%

Resource: Financial report in 2017

Table 1.3.1.4: The profit after tax in 2 years

Profit proportion 2017 2016

Profit after tax/ ROA 2,8% 0,24%

Profit after tax/ ROE 4,2% 2,53%

Profit after tax/ Equity 4,8% 2,8%

Resource: Financial report in 2017

Short-term assets are an integral part of a company's asset structure and are thefirst condition for a company to go into business Short-term assets of the companyare made in two main categories: loans for interest and service fees from brokerage.According to the financial report of 2017, short-term assets increased by 46.3%compare to 2016 Short-term assets are augmented from loans, other account

receivables and services provided by Maybank Kim Eng Long-term assets in 2017increased by 3.3% compare to last year As the financial statement, total assetsincreased by 44.7% due to short-term assets increased After-tax profit in 2017increased sharply 71% equivalent 16.602.142.090 VND Total operating revenueincreased by 25% compare to 2016 and total operating cost also increased by 24%compare with the same period year From the report of company’s business results,the financial situation of Maybank Kim Eng Company increased through each year.Looking at the company's short-term assets, we see that the company is moving itscash flow very dynamically and its ability to process assets is turned into liquid assetsthat bring good business results to the company

1.3.2 The financial statement in 2016 of Maybank Kim Eng Company

Table 1.3.2.1: The financial statement in 2016 and 2015

Business results 2016 2015 FluctuationNet revenue 170.656.168.879 173.098.522.533 (1,4)%

Operation cost 79.541.958.777 72.249.682.310 10,1%

Profit before tax 29.650.092.223 37.968.643.244 (21,9)%

Profit after tax 23.409.292.940 29.198.839.076 (19,8)%

Resource: Financial report in 2016

Table 1.3.2.2: The asset and capital of MBKE Company in 2015-2016

Accounting balance sheet 2016 2015

Total asset 988.171.654.534 992.936.994.617

Charter capital 829.110.000.000 829.110.000.000

Resource: Financial report in 2016

Table 1.3.2.3: The capital structure of the company in 2 years (2015-2016)Other targets 2016 2015

Property structure

Short-term assets/ Total assets 96,5% 96,25

Long-term assets/Total assets 3,5% 3,8%

Capital structure

Liabilities must pay/ Total assets 6,24% 9,04%

Liabilities must pay/ Equity 6,65% 3,23%

Resource: Financial report in 2016

Table 1.3.2.4: The profit proportion of the company in 2015-2016

Profit proportion 2016 2015

Profit after tax/ ROA 2,4% 2,94%

Profit after tax/ ROE 2,53% 3,15%

Profit after tax/ Charter

capital

2,82% 3,52%

Resource: Financial report in 2016

According to the financial report of 2016, short-term asset decreased compare

to 2015 182 billion VND Short-term assets are reduced due to money and anothershort-term asset decreased Long-term assets decreased due to fixed assets and anotherasset As a result, the total assets have fallen sharply compared to 2015 Besides, after-tax profit in 2016 decreased by 19, 8% compared to the results of 2015 Of which,business turnover reduced by 2.4 billion VND or 1,4% from brokerage activities due

to unfavorable business situation in the last year Operating expenses increased by 7.3billion VND or 10,1% from the provision for losses on loans and in 2016, thecompany applied the salary increased policy, adjusted the brokerage commissionpolicy as well as increase other welfare costs for employees Comparing the twoyears, we see that the company has changed its human resources policy and that thestock market in 2016 is subject to a number of objective factors leading to a sharp fall

in investor stock prices

1.4 Evaluate of the financial result

By researching and analyzing the financial situation of MBKE for 3 years from2015-2017, the author sees that the business situation of the company increasesthrough each year, although the company's 2016 business results has decreasedslightly compared to 2015 but that is not the reason for reducing thedevelopment of the company The company is supported by Maybank Kim EngCorporation and under the management of the management is confident thatthe company will grow stronger and will be one of the securities companiesthat affect the market Vietnam In addition, the company has a staffing policyfor employees and their relatives, which helps employees to work hard in theirwork and loyalty to the company

Profit after tax

Net revenue in 3 years of Maybank Kim Eng Company

Profit after tax in 3 years of MBKE Company

Profit after tax/ ROA in 3 years of MBKE Company