VietNam Holding Ltd (VNH)

Sector:

Investment Firms

Index:

FTSE Fledgling

 192.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 18,700.00
  • 52 Week Low: 168.00
  • Currency: UK Pounds
  • Shares Issued: 51.03m
  • Volume: 47,400
  • Market Cap: £97.97m
  • RiskGrade: 39
  • Beta: 0.54

Interview: Pre-IPO growth for Vietnam

By Andrew Hore

Date: Monday 17 May 2010

More than 1,000 state owned enterprises have been privatised in Vietnam and a similar number are still to be privatised. That is good news for AIM-quoted investment company VietNam Holding, which invests in these privatisations.

VietNam Holding focuses on buying pre-IPO stakes in privatisations. “This allows us to do the investment at a lower cost”, says chairperson Min-Hwa Hu Kupfer. “We have a good working relationship with the state”, she adds.

“This year the government is planning to privatise the three main telecoms companies in Vietnam”, says Nguyen Thi Tuong Vi, who heads the investment company’s investment manager VietNam Holding Asset Management. There are also two more large banks that could be privatised, according to Mrs Vi.

Mrs Vi is keen to point out that VietNam Holding is not a tracker fund. The most important sectors in the portfolio are agro-chemicals and fertilisers, construction and building materials and food. The biggest sectors in the market as a whole are property, financials and food.

VietNam Holding shies away from direct investment in property. “Real estate can be a very attractive sector but it is a different asset class”, argues Min-Hwa Hu Kupfer.

Mrs Vi expects the construction and building materials sector to enjoy strong growth in the next five to ten years. This provides some indirect exposure to the property sector.

VietNam Holding is a long-term investor. “Our time horizon is three to five years but in certain cases we sell if we think the share price is unreasonably high”, according to Mrs Vi.

Environmental, social and corporate governance issues are paramount when it comes to choosing what investments to make. Tobacco, gambling and military businesses are excluded as are any involved in child labour or corruption.

Min-Hwa Hu Kupfer points out that China may be the poster boy for economic success but it has been “a disaster in environmental terms”. She is keen to help educate and advise companies on how they behave in relation to the environment as well as ensuring that the investee companies have appropriate corporate governance. “Longer-term, these companies will perform better”, she believes.

The Vietnamese government has negotiated the world economic problems in the past few years relatively well. It clamped down on credit when inflation was starting to get out of hand in 2007 and early 2008 and declared that stability was more important than growth. When the world economy ran into problems later in 2008 the Vietnamese government pumped liquidity back into the economy.

GDP growth exceeded 5% in 2009 and growth of 6.5% is forecast for 2010. External debt has been held down to 28.7% of GDP. Inflation, though, is running at 9.2%.

More than half of the Vietnamese population is of working age which is in sharp contrast to China where there is a large proportion of elderly people.

The Vietnamese stock market has more than doubled from its low point but it is still half of its peak level. Flotations have increased the overall market value even though foreign investment has fallen as a percentage of the market.

The market's historical earnings multiple is around 13, which is lower than the other markets in the region, most of which do not have as good prospects as Vietnam. VietNam Holding's portfolio is trading on 10 times earnings.

VietnNam Holding itself is tightly held with a large chunk of the share capital in the hands of Swiss private banks and their clients.

At 87 cents a share, VietNam Holding is trading at a 43% discount to the April net asset value of $1.52 a share.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

VNH Market Data

Currency UK Pounds
Share Price 192.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 18,700.00
52 Week Low 168.00
Volume 47,400
Shares Issued 51.03m
Market Cap £97.97m
Beta 0.54
RiskGrade 39

VNH Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
27.87% above the market average27.87% above the market average27.87% above the market average27.87% above the market average27.87% above the market average
10.39% above the sector average10.39% above the sector average10.39% above the sector average10.39% above the sector average10.39% above the sector average
Price Trend
14.39% below the market average14.39% below the market average14.39% below the market average14.39% below the market average14.39% below the market average
36.36% below the sector average36.36% below the sector average36.36% below the sector average36.36% below the sector average36.36% below the sector average
Income Not Available
Growth
76.06% below the market average76.06% below the market average76.06% below the market average76.06% below the market average76.06% below the market average
65.78% below the sector average65.78% below the sector average65.78% below the sector average65.78% below the sector average65.78% below the sector average

VNH Dividends

No dividends found

Trades for 11-Oct-2019

Time Volume / Share Price
14:00 3,000 @ 190.00p
11:00 5,000 @ 190.00p
10:57 10,000 @ 194.00p
09:01 5,000 @ 190.00p
09:00 15,900 @ 190.00p

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