(Alliance News) - Vietnam Enterprise Investments Ltd on Wednesday reported a solid rise in net asset value per share in 2020 coupled with a surge in profit.
The closed-end fund focused on investing in Vietnamese equities reported a net asset value per share at December 31 of USD8.30, up 23% from USD6.76 a year prior.
Vietnam Enterprise outperformed the VN Index - a capitalisation-weighted index of all companies listed on the Ho Chi Minh Stock Exchange - by 5.4% in 2020.
"The company had a tough first quarter. However, many investments rebounded during the year and the three-year rolling performance returned 50 basis points above the reference index. VEIL's rebound was driven by the strong performance of its key holdings, especially in banking (notably Asia Commercial Bank, which surged on strong business results and the transfer of its listing to the main stock exchange, Ho Chi Minh Stock Exchange)," the company said.
Pretax profit rose sharply to USD330.5 million, from USD43.1 million, on the back of USD363.2 million in income, which rose from USD78.0 million.
Vietnam Enterprise did not declare a 2020 dividend, unchanged from the year before.
Chair Stanley Chou said: "In 2021, we believe Vietnam's premium structural growth outlook remains intact, driven by the government's major monetary stimulus through cutting the lending rate and reducing the deposit rate, and fiscal stimulus via infrastructure spending to sustain high GDP growth. Thus, we forecast 2021 GDP will resume at a growth rate of 7% on further recovery from the pandemic.
"VEIL is well-placed to continue identifying the best companies for long-term business growth, the primary motive for foreign investors looking towards Vietnam. Our track record over the medium and long-term continues to outperform peers and the reference index, to bring a long-term and sustainable profit for our shareholders."
Vietnam Enterprise shares were up 1.6% at 637.95 pence each in London on Wednesday.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Vietnam Enterprise Investments (VEIL)