Portfolio

Listed holding company in which the State holds a majority. The business consists of the manufacture of cars and mopeds with joint ventures of Ford, Toyota and Honda. The company is net cash and pays an excellent dividend, dividend yield now 12 percent. Maintaining growth is the biggest challenge.

CTG is the largest bank when measured by the number of branches and the second-largest by balance sheet in Vietnam. The major share holders are the State Bank of Vietnam and MUFG Bank, the largest bank in Japan. Stock has underperformed peer bank BID and therefore a strong buy. The most challenging is to keep profitability reform plans intact.

A medium-sized bank focusing on, among other things, consumer credit and SME financing. In steering position is Madam Thao, the richest Lady in Vietnam, the founder of the airline company VietJet. High-quality bank and modest valuation. The most challenging task is to manage possible mergers.

A small-sized bank, pioneer in digital services. A key market share in car financing. Major shareholders also include Japan’s Softbank and Vietnam’s leading IT technology company FPT. Grows intensely and valuation is damn cheap. The most challenging is the value ratios for of a small bank and the risk of unpredictable events.

POW is one of the largest energy company in Vietnam. Generates about ten percent of Vietnam’s electricity. We started buying the company at a low price in the spring of 2020. Challenges: the natural gas purchase agreements with the government.

MBB is the 5th largest bank by balance sheet, and has a full-fledged banking platform including retail/SME lending, insurance, and brokerage. MBB is a well-run quality bank but valuation is well below peers, due to setbacks of its new move into consumer finance, which caused some doubts among investors and a stock price slump. We used this as an opportunity to build our positions. The bank is rather conservative, therefore the biggest challenge is to strive for satisfying loan growth.

ACV manages eight international and thirteen domestic airports in Vietnam. In the balance sheet, there is a huge valuation difference, because the investments made by the company are still at the acquisition prices. We got involved in block purchases after the exchange rate collapse caused by the coronavirus pandemic. The most challenging: State of Vietnam the major share holder.

Nam Long, the strongest Vietnamese brand for affordable housing, a residential developer in Ho Chi Minh City area. The company has several projects in progress, some of which include Japanese partners. Company is in a good shape. Most challenging at the moment: huge Water point -project in the suburbs of Saigon.

Professionally run stock broker, owned by the management. Leading role in the investment banking. Substantial revenue from consulting bisnes and capital market operations. More weight in our portfolio last spring. Competition is heavy in the comissions.

Saigon Cargo Service Corporation is one of Vietnam’s leading air freight companies. Even during a pandemic, the company has been able to make a reasonably good result. We bought the stock in early spring after the price drop. In terms of expansion, it is challenging to find suitable acquisition candidates.