Vietnam : VNH Investor Report - December 2018

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VietNam Holding Limited - VNH Monthly Investor Report Released 07:00 11-Jan-2019

RNS Number : 8531M

VietNam Holding Limited 11 January 2019

VietNam Holding Limited ("VNH" or the "Company")

Monthly Investor Report

A report detailing the ac�vi�es of the Company for the month December 2018 has been issued by Dynam Capital Management Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website ath�p://www.vietnamholding.com/publica�ons/investor-reports and a summary of the report is included below.

Investor Report Summary

Christmas decora�ons were abundant in Vietnam, and local investors also hoped-for a Santa Rally in December which failed to materialise. The broadest equity index in Vietnam (VNAS) decreased by 3.5% in the month, and year-to-date by 13.8%. The Fund's NAV fell by 2.1% in December, delivering a disappoin�ng YTD return of -12.8%. This is despite an a�rac�ve macro picture with modest infla�on (CPI 3% y-o-y), strong FDI (USD 19.1 bn disbursed YTD), a growing trade surplus (USD 7.2 bn YTD) and more than 7% in GDP growth.

Vietnamese equi�es are reasonably priced, at 13x PER, a�er stripping out some outliers, in-line with corporate growth forecasts of 14%. The Fund's por�olio is on an es�mated weighted trailing PER of 12x and a forward PER of 9.7x, and the weighted EPS growth forecast of our por�olio is 22.5%.

Domes�cally we are seeing some weakness in the banking and real-estate sectors, the former from a combina�on of deliberately controlled credit growth and higher provisioning for NPLs, and the la�er from delays in licensing and delays in associated infrastructure (favouring developers with inventory to sell).

We an�cipate con�nued vola�lity in the global economy, with a mul�tude of worries related to geo-poli�cal disloca�ons (China-US, UK-Europe, China-Taiwan?). As Vietnam is an increasingly open economy - expor�ng and impor�ng about 100% of GDP - any poten�al slowdown in the global economy will have an impact. As a result, much of the nervousness in the equity market is imported. With elec�ons planned for Thailand and Indonesia in 2019, Vietnam has one of the more stable poli�cal environments in ASEAN for 2019 and we remain op�mis�c for the outlook of the Fund in 2019.

Following the spli�ng of the por�olio into a Con�nuing Pool and a Tender Pool a�er the EGM on 31st October 2018, and the successful liquida�on of the Tender Pool, we are now working on a rebalancing strategy for 2019.

In December we made a second and final distribu�on of USD 1.22 per share from the Tender Pool, taking the total to USD 2.72 per share. This was achieved in a period of falling equity prices, and low liquidity.

We wish you all a safe and prosperous 2019.

For more informa�on please contact:

Dynam Capital Limited

Craig Mar�n 7590

Tel: [phone]

[e-mail] |www.dynamcapital.com

www.vietnamholding.com

finnCap

Nominated Adviser and Corporate Broker 0500

Tel: [phone]

William Marle / Giles Rolls

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