Vietnam Equity Holding (VEH)

Vietnam Equity Holding (VEH)
Monthly Update – April 2015
Monthly Results
NAV per share
Share price
Discount
Outstanding Shares
Apr – 15
Mar – 15
% Change
€ 3.82
€ 3.80
0.4
€ 3.23
€ 3.23
0.0
15.4%
15.1%
2.0
13,683,202
14,760,574
-7.3*
€52,243,292
€56,157,915
-7.0
th
*Due to Q1 redemption payout on April 30
Total NAV
NAV per share
0.4%
9.7%
34.7%
Since
Inception
63.1%
Share price
0.0%
21.4%
47.8%
21.9%
VN Index in EUR
-2.4%
10.0%
21.2%
-43.2%
Performance Data
80.00%
Monthly
YTD
2014
VEH vs VNI performance (EUR)
60.00%
40.00%
VEH Update
The Fund outperformed the Vietnam Index in April, increasing 0.4%, against a
2.4% fall in the VNI (both in EUR terms). Share price was unchanged MoM
despite peaking at €3.40.
The main contributing tickers were PVD (2.8%), FPT (1.2%) and NBB (0.4%) and
ELC (0.4%), there was a partially realized FX loss of 4.6%.
The VNI gained 2.0% in local terms, opening the month at 551, peaking at 568
before closing at 562. Oil and gas stocks recovered, following heavy falls at the
end of March, with an average 27% increase for April. This was caused by the
17% rise in Brent oil prices, as well as strong foreign net buying of $11m on
PVD, with investors further encouraged by the announcement of a second
share buy back program.
Foreign investors net buying for the month was $84m. Average daily turnover
reduced to $96m (-14% MoM). Vietnam’s trailing PE ended the month at
12x, considerably lower than south east Asian peers such as Indonesia
(22x), Philippines (21x), Thailand (20x) and Malaysia (17x) (source: Bloomberg).
Macroeconomic Update
Inflation was recorded at 0.15% MoM (just 0.99% YoY) due to the effects of
electricity and petrol price rises in March of 10.0% and 7.5% respectively. A
further increase in the CPI is expected for May after another petrol price rise in
early May due to oil prices continuing to rise.
20.00%
0.00%
-20.00%
-40.00%
-60.00%
-80.00%
2007
2008
2009
2010
2011
VEH NAV
2012
Top 7 Holdings
2014
Foreign
Ownership %
% of
NAV
49.0
49.0
38.0
49.0
27.9
49.0
12.7
19.0
13.2
12.7
9.4
6.4
4.0
3.7
FPT Corp (FPT)
Vinamilk (VNM)
PetroVietnam Drilling (PVD)
Japan Vietnam Medical Instrument (JVC)
Development Investment Construction Corp (DIG)
Khang Dien House (KDH)
Becamex (IJC)
VEH Portfolio by Sector
2013
VNI (EUR)
Cash & Others
Consumer
0.2%
Staples
18.1%
Real Estate
22.7%
Industrials
6.4%
Tech
21.9%
Health Care
10.4%
Energy
13.0%
Materials
7.0%
Vietnam Macroeconomic Indicators
Apr-15
Y-o-Y
YTD
2014
GDP Growth (%)
6.0
6.0
6.0%
6.0%
Inflation (%)
0.15%
0.93%
0.04%
1.84%
Exports ($Bn)
$14.4
8.2%
$50.1bn
$150.0
Imports ($Bn)
$15.6
19.9%
$53.1bn
$148.1
Trade Surplus
($1.2Bn) (-$460Mn)
($3.0bn)
$1.9 Bn
or (Deficit)
Disbursed FDI
$1.2 Bn
5%
$4.2 Bn
$12.4 Bn
Registered FDI
$0.9 Bn
-44%
$2.7 Bn
$20.2 Bn
VND/USD
21,590
-2.4%
-0.9%
21,393
Source: SSI Securities Services, General Statistics Office, Bloomberg
Following a currency devaluation on January 7th, the State Bank of Vietnam
weakened the currency by another 1% on May 7th in a bid to keep exports
competitive, with the EU and Japan as two of Vietnam’s largest trade
partners, their currencies weakening against the US dollar has put pressure on
Vietnamese exports.
Nominal retail sales were reported up 8.8% vs the first 4 months of 2014, the
Index of Industrial Production was up 9.5% YoY. Registered FDI is only 77% of
the figure for the first four months of 2014, although disbursed FDI is
$4.2bn, up 5% YoY. Credit growth stands at 2.8%, higher than average for April.
The HSBC Purchasing Manager’s Index for April reached 53.5, up from 50.7 on
March, caused by increasing consumer demand and decreasing price pressure.
For subscription and redemption questionnaire, please contact Investor Relations at
[email protected]
Vietnam Equity Holding Company Details
ISIN
KYG936251043
Bloomberg Code
3MS:GR
Reuters Code
3MS.DE
German Securities Code A0M12V
Board of Directors
Independent Non-executive Directors
Dr. Lee G. Lam (Chairman)
Mr. Howard Golden
Dr. Kathryn Vagneur
Executive Director
Mr. Louis T. Nguyen
Investment Objective The investment objective of the Fund is to achieve capital
appreciation by making equity investments in companies with
significant interests in Vietnam. Specially, the Fund intends to
invest in equity securities of publicly and privately owned
companies, over-the-counter (OTC) companies, listed
companies, and debt securities. The Fund aims to invest in a
diversified and balanced portfolio that should achieve above
average returns at an acceptable level of risk, give rise to longterm and short-term returns, and be capable of yielding
recurrent earnings and/or capital gains.
Contacts
Investor Relations/ Communications
[email protected] / +848-54043 488
Saigon Asset
Management
www.saigonam.com
Jefferies International
[email protected] / +44 (0) 207 898 7127
Edmond de Rothschild Securities
Market Makers
[email protected] / +44 (0)20 7845 5960
Schnigge
www.schnigge.de / +49 211 13 86 10
DISCLAIMER “This document was prepared by Saigon Asset Management Corporation (SAM) and is for informational purpose only and does not constitute or form part of, and should not be construed as, any offer, inducement or an invitation to sell, acquire
or issue, or any solicitation of any offer to purchase or subscribe for, any shares or securities, including any ordinary shares, in Vietnam Property Holding or Vietnam Equity Holding in any jurisdiction. No undertaking, representation, warranty or other
assurance, express or implied, is made by either SAM or any other person, in relation thereto. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future
events or performance are not statements of historical fact and may be "forward looking statements" Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and
uncertainties which could cause actual results or events to differ materially from those presently anticipated. All information is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be
complete. SAM has not made any independent verification of any such information and makes no implied or express warranties on the information provided. SAM does not guarantee the accurateness and completeness of statements made herein. Any
opinions expressed herein are subject to change at any time without notice.”