Portfolio

Vinhomes is the No. 1 housing developer with a 22% market share in Vietnam with a vast land bank of 164 million square meters in residential GFA. Two Key cities Hanoi and HCMC will be the company’s main growth drivers in the next 10 years. Additional growth from industrial real estate. Construction permitting processes are likely to ease for 2021-2023 to stimulate growth.

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

VRE is Vietnam’s biggest mall operator. Huge potential still ahead because retail and services businesses are still behind to be modernized. In the next 5-10 years much bigger share of those revenues will take place thru modern malls. IFRS implementation will bring VRE’s valuation ratios much lower once it becomes a standard in Vietnam. MoF plans to do so in 2022. Currently all ratios here under the Vietnamese accounting standards (VAS).

A medium-sized bank focusing on general banking, 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. Prudent style to manage risks.
Whether it can keep up the fast growth is the biggest challenge as well as consumer credit company’s client risks.

Listed holding company. 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, the dividend yield now 12 percent. Maintaining growth is the biggest challenge. Car penetration still very low in Vietnam and offers potential, but the moped business has limitations.

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 a stock price slump and gave opportunity to build our positions. The bank is rather conservative, therefore the biggest challenge is to strive for satisfying loan growth.

CTG is the largest bank when measured by the number of branches and the second-largest by balance sheet in Vietnam. The major shareholders are the State Bank of Vietnam and MUFG Bank, the largest bank in Japan. Stock’s rerating is on its way and will continue to boost the valuation. Bank-assurance fees will add also profitability in 2021 and 2022.

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. Covid-19-crisis enabled us to enter the stock at low levels. In 2021 ACV will apply for HOSE-listing and the Covid-19-burden will ease.

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.

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.