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Bank exposure boosts VietNam Holding net assets 39%

The manager expects 23% EPS growth year-on-year in 2021 from the trust’s portfolio

Vietnam Holding -

VietNam Holding Limited (LON:VNH) said its net asset value rose by 38.7% in the half-year to end-December 2020, helped by its exposure to banks and the country's success in combating Coronavirus (COVID-19).

Dynam Capital, the trust’s manager, added it had been increasing the holdings in the banking sector throughout the pandemic given the attractive valuations and strong growth potential in an under-banked country.

“In our view, Vietnam's Banking sector stands out unlike in many developed countries right now. Banks in Vietnam are regulated more than other industries and, as a result, must adopt best practice standards, which pushes them to maintain healthier balance sheets and operational resilience,” said Dynam.

Vietnam’s eCommerce potential is also huge, the manager added, with less than 40% of the population currently having a bank account.

The trust’s largest holding in the banking sector is Vietin Bank, currently the country's third-largest bank by assets with a market share of 11.4% in loans and 10.2% in deposits.

Dynam said Vietnam’s successful handling of the Coronavirus pandemic had also been behind the good performance, which has seen the virus contained and exceptional export performance. In addition to this, a vaccination programme is now underway.

The manager added it expects 23% EPS growth year-on-year in 2021 from the trust’s portfolio with accelerated public investment as many projects suspended in 2020 due to the pandemic are set to resume next year.

Total Assets increased to US$138,5mln on 31 December 2020, from US$117.7mln on 30 June. Total Comprehensive Income was US$40.5mln in the six-month period, compared to US$2.6mln in the corresponding period in 2019.

The share price rose by 24.7% in sterling terms during the interim period.

The current price is 209p or close to its record high, while the net asset value per share at the end of last week was 251.2p.

Quick facts: VietNam Holding Ltd

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Price: 292.125 GBX

Market Cap: £86.78 m

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Vietnam Holdings says banking, domestic consumer and industrialisation all...

VietNam Holding Limited's (LON:VNH) Craig Martin joins Proactive London to discuss net asset value which rose by 38.7% in the half-year to end-December 2020. Martin says the strength of the banking industry, the domestic consumer, industrialisation and urbanisation opportunities in the...

on 30/3/21

2 min read