Monthly Investor Report

RNS Number : 8314Z

VietNam Holding Limited

12 March 2013

 



VietNam Holding Limited (the "Company")

Investor Report

A report detailing the activities of the Company for the month of February 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:

The Tet (lunar new year) festivities made February a short business month in Vietnam, with no less than nine days of official holidays. The recent rally in the equity markets came to a spluttering end in February.  In HCM City, the VNI ended the month down 5 points, at 474.6.  Local investors remain anxious about the economic recovery, with mixed signals emanating from various sources. The Purchasing Manager's Index, for example, dropped below 50 again, to 48.3, even though inventories are gradually clearing. And a false rumor that the Chairman of State-owned BIDV bank had been arrested also served to fray local investors' nerves.

There was more good news on the inflation front, with just a 1.32% MoM rise in consumer prices, despite the feverish buying that tends to occur around Tet. This took annual inflation to 7.02% YoY; high but not so by recent historic standards.  Provisional figures suggest the trade surplus for February was around US$900m, on exports of US$7.5bn and imports of US$6.6bn. The foreign-invested sector continues to be the star performers. During the first two months of 2013, Vietnam's corporate sector as a whole generated a trade surplus of US$1.67bn, of which foreign-invested firms generated a net surplus of US$2.96bn, and domestic firms racked up a net trade deficit of US$1.29bn. After 20 years of trade deficits, we may have to get used to positive trade balances!

VNH Insights:

An update of the evolution of the market segment valuations in 2013:

	HCMC Stock Market			VNH Portfolio
As of	20 Large Caps	288 SMEs	Multiple	7 Large Caps	17 SMEs	Multiple
31-Dec-12	15.77x	5.43x	2.9x	9.95x	5.87x	1.7x
31-Jan-13	18.50x	5.82x	3.2x	11.52x	6.12x	1.9x
28-Feb-13	21.60x	5.16x	4.2x	11.44x	6.44x	1.8x

The gap widens. Yet another chapter was added to the tail of two markets. Several top brokers in Vietnam are shifting their research coverage towards the small- and mid caps.  This should improve valuations and liquidity.

In the meantime, most companies have reported their full 2013 earnings.  This allows us to update the VNI aggregate 5-year EPS growth and compare it with our VNH portfolio's: the market's 7.9% compares to our 21.4% p.a. on average. The VNH NAV was essentially flat for the month of February.

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]

 

END

 

 

MSCNKBDDQBKDCND