Monthly Investor Report

RNS Number : 6083X

VietNam Holding Limited

11 February 2013

 



VietNam Holding Limited (the "Company")

Investor Report

A report detailing the activities of the Company for the month of January 2013 has been issued by VietNam Holding Asset 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/latest-publications.aspx and a summary of the report is included below.

Investor Report Summary

Vietnam News

Vietnam's equity markets welcomed 2013 in the same way that they said goodbye to 2012; with a rally, and relatively strong volumes.  The benchmark VNI on HOSE ended January at 479.79, up 14.7% for the month and 23.7% YoY, testing the highs of early May 2012.  The market actually rose for the first two weeks of the month, then retreated in the third week, before rising again for all but the last day of the month.  Profit-taking and the commencement of the Tet holiday in mid February will likely result in some profit-taking, as retail investors seek to have some cash for the annual festivities.

The tale of the two markets continues: The 20 large-caps, which make up 80% of the HOSE, have seen their valuation increase by a collective 15.9%. Their aggregate trailing P/E is now at a sky-high 18.3x, higher than the market valuations of all Asian peer markets, except the Philippines'. The valuations of the small- and mid-caps on HOSE continues to be attractively low at an average P/E of 5.8x, up 6.8% since year-end.

VNH Insights

Compared to the benchmark VNI's increases, VNH's NAV per share increased by a lower 8.6% for the month and by a better 25.5% year-on-year. VNH's large caps, which make up merely 32% of the VNH portfolio, have an aggregate P/E of 11.52x. VNH's small- and mid-cap companies, which make up 68% of the total portfolio, produced a very modest P/E of 5.85x. The resulting trailing portfolio P/E of 7.7x is a full 41.3% lower than the overall market's - a tribute to VNH's value investment approach.

Turning to the macro-economic picture, inflation was 1.2% MoM, taking the YoY figure to 7.1%.  This was anticipated for the run-up to Tet when consumers typically go on an annual spending spree.  There was no change in interest rates, and the local currency VND held steady for yet another month.  Vietnam again achieved a small trade surplus in January, initially estimated at US$200m, on exports of US$10.1bn and imports of US$9.9bn.  Foreign-invested enterprises accounted for a record 65% of all export earnings.

For more information please contact:
VietNam Holding Asset Management Limited
Gyentsen Zatul	Telephone: [phone]
- Investor Relations
Oriel Securities Limited (Nominated Adviser and Broker)
Joe Winkley	Telephone: [phone]

 

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