PYN Elite down 10.2% in April

Vietnam’s continued crackdowns on bond market irregularities and stock market manipulation with several arrests have sent the VN-Index down by 8.4% in April. PYN Elite -10.2%, led by the declines of VHM, CTG, TPB and MBB. Despite the short-term damage, we believe this housecleaning series will help to enhance market stability and a healthier business environment in the long term. Meanwhile, the market overreactions have created more opportunities than threats: The VN-Index’s forward 2022 P/E has dropped to 12.7x vs. the average 17.6x of Thailand, Philippines and Indonesia, with several blue-chips now trading below 10.x P/E despite strong growth prospects.

April macro: The economy is getting more and more vibrant: April export +25% YoY, outpacing import growth at 15% YoY and led to a $2.5 billion YTD trade surplus. Both production and consumption are gaining speed as IIP +9.4% YoY and retail sales +12.1% YoY in April, much higher than the respective growth of 6.4% and 4.4% YoY in Q1. Inflation remains well under control at only 2.64% YoY. Contrary to the market’s presumptions about the tightening of credit into real estate, our decent market-leading developers said they still got abundant loan offers from banks for both their projects and their home buyers. Several sales launches in Mar-Apr were beyond successful with thousands of units sold out in only 1-2 days.

The Stock of the month: Vincom Retail. On April 28th, Vietnam’s leading mall owner VRE successfully launched a new 68,000-sqm Vincom Mega Mall in Smart City – Hanoi, which will then be followed by the grand openings of two more Vincom Plazas in Southern Vietnam in June. The 3 malls, which have committed occupancy rates of 95-98%, mark the return of VRE’s mall expansion after the long launching delays during pandemic years. They are also well-timed to capture the soaring domestic consumption post-COVID. VRE’s total leasing GFA is planned to expand by 1.8x-2.3x by 2026, backed by its sufficient landbank and Vietnam’s low mall penetration. Its business performance is also set to recover strongly in 2022, with earnings growth targeted at 83% YoY.


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7th May 2024

We have become aware in recent weeks of an ongoing fraud in Vietnam. This fraud involves the illegal use of the names ‘PYN’ or ‘PYN Elite,’ or variations thereof, in attempts to scam money from individuals through false or fake companies, mobile apps, websites, or social media.