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.

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.

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 small-sized bank, a pioneer in digital services. A key market share in car financing. Very popular among young customers. Major shareholders also include Japan’s Softbank and Vietnam’s leading information technology company FPT. Can grow loan and fee income fast. The biggest challenge for the bank is the risk of unpredictable events.

MBB is the 5th largest bank by balance sheet and has a full-fledged banking platform including retail/SME lending, insurance, and brokerage. MBB launched creative marketing campaigns that expand its retail market share rapidly this year. It also witnessed success in insurance and recovery from consumer finance. All this success leads to the outperformance of the bank this year. The bank is rather conservative, therefore the biggest challenge is to strive for satisfying loan growth.

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.

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.

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. The Covid-19 crisis enabled us to enter the stock at low levels. In 2022 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 the Ho Chi Minh City area. The company has several projects in progress, some of which include Japanese partners. Some key projects to fuel growth in the next 3-5 years are located in HCMC’s satellite cities, including the huge Waterpoint project which has recently shown better sales progress after years of delay.

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 the first wave of Covid-19 after the price drop. In terms of expansion, it is challenging to find suitable acquisition candidates.