Last checked at 
14 Aug 2019 08:10
VietNam Holding Limited ("VNH" or the "Company")
Monthly Investor Report
A report detailing the activities of the Company for the month July 2019 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 at http://www.vietnamholding.com/publications/investor-reports and a summary of the report is included below.
Investor Report Summary
The Fund's NAV per share increased by 3% during July, outperforming the Vietnam All-Share Index which rose by 2.6%. Four of our top-five stocks performed strongly: FPT (10.8% NAV, +6.8%), Phu Nhuan Jewelry (PNJ, 9.8% NAV, +6.7%), Mobile World Group (MWG, 7.5% NAV, +15.6%), and Military Commercial Bank (MBB, 6.4% NAV, +6.7%); two of the laggards were Saigon Cargo Services (SCS, 8.1% NAV, -3%) and Khang Dien House (KDH, 5.2% NAV, -8.6%.)
Most companies reported robust Q2 and H1 results. FPT experienced growth across multiple segments (revenues from its domestic internet business rose 18%, and IT outsourcing revenues grew 38%.) PNJ and MWG continued to benefit from rising income levels and growth in modern trade. MBB was in the news on reports that it plans to attract new foreign investors; it trades at an undemanding ratio of 1.2x 2019 book value (versus 3.4x for Vietcombank). FPT, PNJ, MWG and MBB are all at their foreign ownership limits, so that any increases in the short term will be domestically driven. We reviewed the performance of SCS with its CEO and remain positive on the company.
The Fund was an early investor in SCS which has a 35% market share in the international and domestic air-cargo segment. The logistics sector is a key component of Vietnam's growth story and in July we completed an investment in A BA Trading Solutions JSC (ABA Cooltrans), a private integrated cold-chain logistics company. ABA Cooltrans provides third party services for convenience stores, minimarts and supermarkets; as well as quick service restaurant chains. The company owns nearly 300 refrigerated trucks and 40,000 pallets of cold storage in Hanoi and Ho Chi Minh City. The Fund invested the VND equivalent of USD 6m (4.2% NAV) in the form of convertible bonds and intends to convert the bonds ahead of any eventual listing of the shares, subject to foreign ownership restrictions.
Vietnam's macro position remains strong and the State Bank announced record levels of FX reserves. It will need this strength to navigate the choppy seas that lie ahead. Geopolitical risks, trade wars and the threat of currency wars are increasing in the region, and Vietnam will be impacted.
For more information please contact:
Dynam Capital Limited
Craig Martin Tel: +84 28 3827 7590
info@dynamcapital.com |www.dynamcapital.com
www.vietnamholding.com
Twitter - @capitaldynam
finnCap
Nominated Adviser and Corporate Broker Tel: +44 20 7220 0500
William Marle / Giles Rolls