Yuanta aims to make splash with return to market
New programmes for trading and futures guidance key to rebirth. By Nuntawun Polkuamdee
Yuanta Securities (Thailand), a subsidiary of Taiwan’s largest broker, is aiming for a top five spot in the Thai market in three to five years as it returns following an exit three years ago.
The substantial turnover growth of the Stock Exchange of Thailand (SET) and Thailand’s geographic advantage as the centre of Southeast Asia has drawn Yuanta Financial Holdings (YFH) back to the Thai capital market, Charnsak Thanatecha, chief executive of Yuanta Securities (Thailand), told the Bangkok Post.
“The Thai stock market has the top trading value in Asean with high turnover the past three years. The SET’s market capitalisation will continue to increase, driven by IPOs [initial public offerings],” he said.
“The Thai market seems to be the most attractive in the region and YFH has a strategy to expand business here. Thailand is our centre of investment in this region.”
YFH has returned to operate in Thailand after selling its Thai outlet to Maybank (Singapore) three years ago. The Taiwanese company acquired a 99.99% stake in KK Trade Securities from Kiatnakin Phatra Financial Group (KKP) for 686.9 million baht.
Yuanta Securities (Thailand) reopened on Sept 1.
Mr Charnsak said the Thailand 4.0 initiative will steer the country to become an advanced industrial nation, while the government’s big-ticket infrastructure projects will drive future growth.
The company is keen on offering innovative and technical tools to allow Thai investors to hedge and make profits, he said.
It has already created “Stoxify”, a userfriendly trading program that helps investors select stock targets by looking at a ranking.
The program’s backdated tests show its return surpassed 100% in the last 12 months. Stoxify’s formula calculates stock fundamentals along with quantitative analysis and technical data. Yuanta plans to use it for trading on the global market.
Another trading program it developed for the futures market is called the Deep Learning program to guide investors to long or short their positions.
“We’re confident the tools for both stock and futures markets will facilitate Thais in making successful investments,” said Mr Charnsak.
Yuanta Securities (Thailand) also plans to roll out new products such as derivative warrants, in which YFH is the market leader in Taiwan.
The company hopes to raise its institutional customers to balance its structure, of which around 70% is retail, he said.
The Thai brokerage house has around 30,000 retail accounts, of which 14,000 are active, and it has a 0.8% market share in securities trading.
“However, retail investors are the target group. The company doesn’t need to jump into a pricing war or desperate grab for customers. We are offering a new trading platform that is more efficient and will make more profit,” said Mr Charnsak.
Next year Yuanta Securities (Thailand) plans to expand into financial advisory
The company doesn’t need to jump into a pricing war. CHARNSAK THANATECHA CHIEF EXECUTIVE OF YUANTA SECURITIES (THAILAND)
services, while increasing its margin loans to 5-7.5 billion baht within the next two years from 600-700 million currently.
It expects to open two new branches in Nakhon Pathom and Nakhon Ratchasima, adding to its 12 outlets.
He said the company had tripled its paid-up capital to 1.5 billion baht from 500 million in July to serve its new businesses, and it is exploring opportunities to acquire a small brokerage house.
Net profit for the first half this year amounted to 9 million baht, and it is expected to reach 20 million for the full year, said Mr Charnsak. Even though the company started operation in September, KK Trade’s net profit was booked into Yuanta Securities (Thailand)’s balance sheet.
The bottom line is projected to jump next year as its business runs a full year, he said.