Vietnam Holding Ltd (LON:VNH) is trading at more than a 23% discount to the value of its net assets, broker finnCap pointed out in a new research note.
At the recent share price of 214p this compared to the latest 286p net asset value (NAV) per share for the London main market investment trust.
Analysts at the company's house broker noted that the near-£100mln trust has been seeking Vietnam’s best listed quality & growth companies since it was launched in 2006, delivering a long-term track record of outperformance of the Vietnam All Share index.
Dynam Capital, the investment manager, where Vu Quang Thinh leads a nine-strong Vietnam-based team, keeps a concentrated portfolio of around 25 locally listed equities, with the focus on EPS growth at attractive valuations.
The trust's portfolio has shown higher and more consistent EPS growth than the local benchmark of 22% versus 13% since 2017 and with 2021 forecast to grow 41% versus 26%, while valuations have remained consistently lower.
Investing in Vietnam is a play on the ongoing economic growth of the south-east Asian country, where the economy has been growing at an average of almost 7% since 2015 and is expected to remain one of the world’s highest GDP growth countries.
In the near term, the economy is in strong shape, the broker said, with limited Covid-related domestic disruption, high domestic confidence and a strengthened export position amid a stable currency in recent years and trade surpluses set to continue to support the
dong.
Vietnam is "set to continue to be a beneficiary of relocation of manufacturing from other countries... especially given the tense relationship between the US and China" and with its electronics industry a key fast-growing market as much more of the world works from home.