VietNam Holding Limited Monthly Investor Report (8531M)
January 11 2019 - 2:00AM
UK Regulatory
TIDMVNH
RNS Number : 8531M
VietNam Holding Limited
11 January 2019
VietNam Holding Limited ("VNH" or the "Company")
Monthly Investor Report
A report detailing the activities 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 at
http://www.vietnamholding.com/publications/investor-reports and a
summary of the report is included below.
Investor Report Summary
Christmas decorations 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 disappointing YTD return of
-12.8%. This is despite an attractive macro picture with modest
inflation (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 equities are reasonably priced, at 13x PER, after
stripping out some outliers, in-line with corporate growth
forecasts of 14%. The Fund's portfolio is on an estimated weighted
trailing PER of 12x and a forward PER of 9.7x, and the weighted EPS
growth forecast of our portfolio is 22.5%.
Domestically we are seeing some weakness in the banking and
real-estate sectors, the former from a combination of deliberately
controlled credit growth and higher provisioning for NPLs, and the
latter from delays in licensing and delays in associated
infrastructure (favouring developers with inventory to sell).
We anticipate continued volatility in the global economy, with a
multitude of worries related to geo-political dislocations
(China-US, UK-Europe, China-Taiwan?). As Vietnam is an increasingly
open economy - exporting and importing about 100% of GDP - any
potential slowdown in the global economy will have an impact. As a
result, much of the nervousness in the equity market is imported.
With elections planned for Thailand and Indonesia in 2019, Vietnam
has one of the more stable political environments in ASEAN for 2019
and we remain optimistic for the outlook of the Fund in 2019.
Following the splitting of the portfolio into a Continuing Pool
and a Tender Pool after the EGM on 31st October 2018, and the
successful liquidation of the Tender Pool, we are now working on a
rebalancing strategy for 2019.
In December we made a second and final distribution 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 information please contact:
Dynam Capital Limited
Craig Martin 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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END
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