REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

24/10/2024 07:15

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RNS Number : 3198J  VietNam Holding Limited  24 October 2024

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

Monthly Investor Report

A report detailing the activities of the Company for the month of September
2024 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
(http://vietnamholding.com/media/c2ymogtb/vnh-investor-report-september-2024.pdf)
and a summary of the report is included below.

Manager Commentary: Banking on recovery

Despite devastation caused by Typhoon Yagi in early September, particularly
around the Red River Delta, which mostly affected the agricultural sector,
Vietnam managed to stay strong on the ever so uncertain global stage. For the
first time since becoming Vietnam's president in May, To Lam toured the world
throughout the month with significant visits to China, the US, Cuba and
France. Lam continued to advocate Vietnam's 'bamboo diplomacy' approach to
foreign policy, widely regarded as a delicate balancing act of relations
between powers like the US and China in terms of maintaining autonomy and
national interests. His trip to the US coincided with the United Nations
General Assembly, where he met with President Biden to reaffirm the US-Vietnam
Comprehensive Strategic Partnership. While the visit to China was significant
in stabilising and enhancing Vietnam-China ties, given the neighbouring
countries' long history and recent tensions in the South China Sea, it was
even more telling that a Chinese delegation came to Vietnam within the same
month to confirm their commitment to increasing economic ties. Lam, who was
previously the minister of public security, was praised both at home and
abroad for his pragmatic style of attracting further foreign investment,
especially in the manufacturing and technology sectors.

There is no doubt this helped keep Vietnam's projected GDP growth for 2024 in
the range of 6% and 7%, which stands out globally. The IMF currently forecasts
6.1% growth, it says is driven by strong external demand, resilient foreign
direct investment (FDI), and supportive fiscal and monetary policies. HSBC
recently raised its forecast to 7%, highlighting Vietnam's robust Q3
performance in 2024, especially in manufacturing and exports, which have shown
significant recovery, particularly in sectors like electronics, textiles, and
footwear.

The equity market reflected this nicely in September as it started to price in
the brighter macroeconomic outlook. A weaker US dollar and the Federal Reserve
rate cuts certainly supported the sentiment of the local market too.

As for the Fund, it was up 21.3%, versus the VNAS benchmark's 15%, for the
first nine months of 2024. This performance was largely due to our largest
holding, which is in FPT, one of Vietnam's leading technology companies. Its
stock surged by around 60% during this period and exemplifies the
opportunities in Vietnam's developing growing digital economy. But we must
also note our overweight in Financial Services, particularly in Sacombank
(STB) and Techcombank (TCB), with respective proportions of 4.1% and 6.4%.
Both stocks saw large buy-ins, given their long-term growth with strong retail
operations and focus on digital transformation, even as some banks experienced
selloffs. STB reported a 12% increase in profits during the first half of 2024
(1H2024) compared to the same period last year. TCB also showcased robust
performance, with a reported pre-tax profit target for 2024 that reflects an
18.4% growth year-on-year. The Fund maintains selective over weights in Banks
and Retails with the expectation that they will continue to ride the stride in
the second half of 2024. We also expect strong EPS growth in 2H2024 and
maintain the forecast of about 20% EPS growth for 2025.

Our recent first share redemption, where ~12.6% sought to redeem (out of
possible 100%) showed strong support for the fund (hence the higher than
normal cash balance at month-end). The fund's discount to NAV remains the
narrowest by far of the three UK listed Vietnam funds. Our AGM and Webinar is
scheduled for 7th November. Register to attend the webinar here
(https://sparklive.lseg.com/VietnamHoldingLtdGuernsey/events/3a22fd0e-e467-4e9e-9920-d383fa9bcf01/vnh-agm-webinar)
.

The Fund has also been nominated for two awards - CityWire and QuotedData -
the results of both will be known in November.

For more information please contact:

Dynam Capital Limited

Craig
Martin
Tel: +84 28 3827 7590

 

info@dynamcapital.com (mailto:info@dynamcapital.com) |www.dynamcapital.com
(http://www.dynamcapital.com)

 

www.vietnamholding.com (http://www.vietnamholding.com/)

Cavendish Capital Markets Limited

Corporate Broker and Financial Advisor
                                 Tel: +44 20
7220 0500

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