Monthly Investor Report

RNS Number : 9324S

VietNam Holding Limited

11 November 2019

 

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

Monthly Investor Report

A report detailing the activities of the Company for the month October 2019 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 website and a summary of the report is included below.

Investor Report Summary

The Fund's NAV per share declined by 1.6% during October compared with a 0.3% decline in the Vietnam All Share Index. Positive contributors in the month included Phu Nhuan Jewelry (10.3% NAV, +3.6%), Khang Dien House (5.6% NAV, +2.8%), MB Bank (6.9% NAV, +0.9%) and FPT (12.5% NAV, +0.4%). Detractors included Dat Xanh Group (4.8% NAV, -11.5%), Saigon Cargo Services (7.7% NAV, -3.8%) and Thien Long Group (4.3% NAV, -4.5%).

Third Quarter revenues at Thien Long Group (TLG) were up 9% year-on-year but sales and marketing expenses increased, contributing to a 19% year-on-year decline in net profit after tax. TLG is trying to grow its international sales to augment its market leading domestic position (60% market share in stationary) and is also looking to develop new domestic product categories. Earlier in the year US-based Newell Brands (Parker, Papermate, Sharpie) acquired a 7% stake in TLG at a 30% premium to market price and a have a seat on the board. We are currently evaluating the next growth phase for TLG and brought a European manufacturing specialist with us on our recent visit to the company. 

Vietnam's Gross Domestic Product will be revised upwards by the Government, representing a per capita GDP of approximately USD 3,000. This has trebled over the last 15 years. When Thailand and China reached these levels, their GDP per capita doubled again in less than 7 years. This inflexion point bodes well for increases in consumer purchasing power and should result in continuing growth in the retail segment which accounts for more than 23% of the Fund's NAV. In addition to the headline gains in exports and increased FDI that Vietnam has been making as a result of the trade war, the domestic economy is growing at robust levels. Mobile World Group (8.4% NAV) is leading the transformation of the modern trade segment in Vietnam across several categories (approximately 30% of total sales) supported by specialist logistics companies such as ABA Cooltrans (4% NAV) who have seen their volumes increase by over 100% year-on-year. Phu Nhuan Jewelry and Mobile World are also championing the development of new product categories in the country, including watches.

The Annual report for the year ending 30 June 2019 was published on 9th October. On Friday 8th November the Fund's AGM was held in Zurich and all the resolutions were duly passed.

For more information please contact:

Dynam Capital Limited                  

Craig Martin                                                                                       Tel: [phone]

[e-mail] |www.dynamcapital.com

www.vietnamholding.com

finnCap

Nominated Adviser and Corporate Broker                                         Tel: [phone]      

William Marle / Giles Rolls

 

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