VinaCapital Vietnam Opportunity Fund Ltd. (VOF)

Sector:

Investment Firms

Index:

FTSE 250

324.50p
   
  • Change Today:
    -1.00p
  • 52 Week High: 357.50p
  • 52 Week Low: 214.00p
  • Currency: UK Pounds
  • Shares Issued: 174.08m
  • Volume: 84,772
  • Market Cap: £564.88m
  • RiskGrade: 114

VinaCapital pours $33m into big Vietnamese egg producer

By Josh White

Date: Monday 26 Feb 2018

LONDON (ShareCast) - (ShareCast News) - VinaCapital's flagship fund, the VinaCapital Vietnam Opportunity Fund, has invested in Vietnam's leading producer of pasteurised eggs and poultry meat Ba Huan JSC, it announced on Monday.
The fund invested $32.5m to acquire a "significant minority stake" in the company.

It may also invest a moderate amount of additional capital during the next 12 months, as Ba Huan delivers on mutually agreed milestones, the VinaCapital board reported.

With more than 30% share of the pasteurised egg market, VinaCapital said Ba Huan is a well-known name to Vietnamese consumers.

The company had made significant investments in its operations, importing modern production lines from Europe and adhering to international standards.

It also implemented a fully-integrated and enclosed value chain from feed production and farming, to producing fresh, safe, and clean meat, eggs, and processed foods, enabling it to fully control product quality across the value chain, and allowing it to fully trace its products.

In 2018, the company expected revenue to surpass $90m.

"Ba Huan has become one of the strongest fresh food brands in Vietnam," said VinaCapital Opportunity Fund managing director Andy Ho.

"Food safety is a concern in the country, and Ba Huan's growth is due to its reputation for producing high-quality and safe foods."

Ho said Ba Huan had a history of innovation, a management team with a clear vision for expansion, and a market that was rapidly growing.

"We look forward to working with Ba Huan's management team to help implement new management practices, improve governance, and otherwise help take the company to the next stage of growth."

According to Poultry World, egg consumption was on the rise in Vietnam, with both chicken and duck eggs popular.

Chicken consumption was also increasing, growing at a compound annual growth rate of 8.6% according to DBS Bank, with local producers reportedly struggling to meet demand.

By 2021, average chicken consumption was forecast to expand to nearly 17kg per year, from around 8kg in 2015, driven by urbanisation and a growing middle class with greater disposable income, VinaCapital said.

Additionally, poultry production continued to be dominated by small family farms, with limited resources to scale up.

"This private equity investment is consistent with our strategy of focusing on companies operating in the sectors of the economy benefitting from strong domestic growth," Ho added.

"Vietnamese food and beverage companies in particular have tremendous growth opportunities ahead of them as consumers spend more on high-quality, healthy products.

"Ba Huan is well-positioned to capitalise on these trends, and we are excited to work with them to realise their potential."

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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.

 

VOF Market Data

Currency UK Pounds
Share Price 324.50p
Change Today -1.00p
% Change -0.31 %
52 Week High 357.50p
52 Week Low 214.00p
Volume 84,772
Shares Issued 174.08m
Market Cap £564.88m
RiskGrade 114

VOF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
30.81% above the market average30.81% above the market average30.81% above the market average30.81% above the market average30.81% above the market average
26.25% above the sector average26.25% above the sector average26.25% above the sector average26.25% above the sector average26.25% above the sector average
Price Trend
15.77% above the market average15.77% above the market average15.77% above the market average15.77% above the market average15.77% above the market average
41.37% above the sector average41.37% above the sector average41.37% above the sector average41.37% above the sector average41.37% above the sector average
Income
48.25% above the market average48.25% above the market average48.25% above the market average48.25% above the market average48.25% above the market average
94.64% below the sector average94.64% below the sector average94.64% below the sector average94.64% below the sector average94.64% below the sector average
Growth
30.18% above the market average30.18% above the market average30.18% above the market average30.18% above the market average30.18% above the market average
4.27% below the sector average4.27% below the sector average4.27% below the sector average4.27% below the sector average4.27% below the sector average

VOF Dividends

  Latest Previous
  Interim Final
Ex-Div 09-Apr-20 31-Oct-19
Paid 01-May-20 13-Dec-19
Amount 5.50¢ 5.50¢

Trades for 13-Aug-2020

Time Volume / Share Price
15:33 303 @ 324.50p
15:33 1,700 @ 324.50p
15:33 300 @ 324.50p
15:19 306 @ 325.50p
15:17 125 @ 325.00p

VOF Key Personnel

Chair Steven Andrew Ralph Bates

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