VIETNAM HOLDING LIMITED 10/3/2020 | Monthly Investor Report - RNS - London Stock Exchange |
Regulatory Story
VietNam Holding Limited - VNH Monthly Investor Report
Released 09:00 10-Mar-2020
RNS Number : 5757F
VietNam Holding Limited
10 March 2020
VietNam Holding Limited ("VNH" or the "Company")
Monthly Investor Report
A report detailing the acviŸes of the Company for the month February 2020 has been issued by Dynam Capital Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's websiteand a summary of the report is included below.
Investor Report Summary
February saw a slight narrowing in the connuing sell-off in equies as investors sought to discriminate some sectors despite an overall fear of the impact of COVID-19. The Fund's NAV per share declined by 3.5% during the month, below the Vietnam All Share Index which fell by 3%. Year-to-date the Fund is down by 8.9 percent. Our top holding FPT (13.7% NAV) rose by 5.9% and Dat Xanh Group (DXG, 4.3% NAV) gained 2.5%. Saigon Cargo Services (SCS, 5% NAV) fell 14.2% on concerns of disrupted supply chains and Hoa Phat Group (HPG, 4.8% NAV) fell 7.3%. Vietnam's control measures against COVID- 19 bore some fruit, and the 16 people inivally infected were all cleared and released by the end of the month. On Friday 6th March, however, a Vietnamese naonal returning to Hanoi from Europe was diagnosed as having COVID-19, and this created a further cluster of 15 new infecons. That, coupled with fear in Europe as Italy quaranned 16 million people and with significant volality in commodity and equity prices globally, has depressed domesc investor senment.
On a brighter note, February saw the raficaon by the EU of a Free Trade Agreement, Vietnam's 17th, a further validaon of the country's willingness to
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10/3/2020Monthly Investor Report - RNS - London Stock Exchange
trade with the world (already at 200% of GDP). Trade for the first two months of 2020 is up, albeit with a modest trade deficit.
The mid-term prospects for Vietnam remain strong, as it connues to aract investment from other parts of Asia as a manufacturing diversificaon strategy - 'China-plus-one'. South Korean manufacturers have been moving more producon to Vietnam, and also announcing plans to invest in more R&D centres, a posive sign for Vietnam's growing technology and engineering sectors.
The Fund is posioned to benefit from the trend of consumerism, and modernizaon of the economy. This year we have been adding to some banking posions, which are looking cheap, and this has raised the average market capitalizaon to $440m. Recently, Military Bank (MBB, 7% NAV) raised $99m in a private placement of 64.3m new shares and 21.4m treasury shares to foreign instušonal investors. Other than in these approved issuances, foreign investors would have to pay around 25% premium to its listed price to acquire MBB, which is at its Foreign Ownership Limited (FOL). During the month two new indices were created, to accommodate two domesc ETFs, one focused on the banking sector, and one on FOL stocks. We expect the eventual flows into these two ETFs to provide some posive li to several stocks in our porolio, which at 9.7x Price-to-Earnings is looking cheap.
The Investment Manager will be in the UK and Europe from 24-31st March - do contact us to arrange a meeng.
For more informaon please contact: | |
Dynam Capital Limited | |
Craig Marn | Tel: +84 28 3827 |
7590 |
info@dynamcapital.com|www.dynamcapital.com
www.vietnamholding.com | |
finnCap | |
Nominated Adviser and Corporate Broker | Tel: +44 20 |
7220 0500 | |
William Marle / Giles Rolls |
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10/3/2020 | Monthly Investor Report - RNS - London Stock Exchange |
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Monthly Investor Report - RNS
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Vietnam Holding Ltd. published this content on 10 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2020 09:33:02 UTC
