VN Index +2.4% in November. PYN Elite (+7.3%) outperformed the index this month driven by CEO (229,3%). The real estate sector is rallying this year, on both strong housing demand and revaluation of landbank. CEO especially caught market attention, thanks to its sizable landbank in Van Don. Investors’ confidence in its landbank value was further underpinned by CEO’s recent successful project launch there. The bank sector also contributed to Index gain as the central bank gave out a new credit quota. Daily trading liquidity surged to a new record high of $1.7 B in this month (+50% MoM, +460% cf FY2020).
Macro data: Economy rebounded further in November: PMI remained positive at 52.2, exports swang back to a strong growth of 18.5% YoY and hit the highest monthly level of $30 B, industrial production +5.6% YoY which reversed the negative trend from July to October, retail sales +6.2% MoM.
53.7% of the population has received full vaccination in Vietnam, while in Hanoi and HCMC the rate is even more than 90%. With the current speed of 1.5 M doses of vaccine being administered per day, Vietnam could have 70% of the population fully vaccinated within 2 weeks.
PYN Elite Stock of the Month: CTG. Banks have taken a pause since the 4th wave of Covid as investors await on the sideline for clarity on the NPL situation. Brokers rallied furthermore on surging trading liquidity and anticipated gains from prop desks. Banks now trade at a discount to brokers and are poised to catch up.
Among banks, CTG valuation is the most attractive. This year, CTG pre-emptively made sufficient provisions ahead of regulatory requirements, and we expect the provision pressure will ease off in the future. Meanwhile, banca upfront fee and divestment gains from its subsidiaries to boost bottom line for 2022 and year beyond. CTG has just proposed to pay a cash dividend of VND800/share which exceeds its original plan.
PYN Elite Monthly Review.pdf