The VN-Index closed August +0.1%. PYN Elite dipped -1.7%, due to VND currency weakening against the USD by -1.6%. Earlier this month, amidst negative headlines about the bankruptcy filing of Chinese real estate giant Evergrande and the volatility of Vinfast’s share price, retail investors hurried to lock in their profits as VN-Index surged by 20% since April. Sentiment improved notably after SBV delayed the implementation of some stringent lending restrictions. This makes it easier for real estate developers to access bank loans. Average daily liquidity soared to $1.1 billion, a level unseen since April 2022.
Macro: The economy is not strong yet but continues to recover: Monthly exports value has increased steadily since April, and August showed another stellar improvement of +7.7% MoM (although -7.6% YoY from a high base last year), as global inventory level decreases and demands are back. Industrial production picked up for the 4th consecutive month (+2.6% YoY). Retail sales +7.6% YoY on further recovery in tourism activities. International tourist arrival reached 1.2m (+17.2% MoM, +150% YoY), the highest monthly record since the post-covid period. In 8M 2023, public investment surged 40.3% YoY to USD12.7bn.
PYN Elite Stock of the Month: Sacombank (STB)
STB’s net profit grew by 84% YoY in 1H2023, outpacing the industry’s average of 4%. The growth was underpinned by fewer write-offs for legacy assets and its strong core business. Its loan portfolio shows resilience with stable NIM and low NPL, thanks to no exposure to the corporate bond market and more affluent clients accumulated from its long history. STB is likely to complete the sale of its biggest collateral Phong Phu Industrial Park, a large valuable land located south of HCMC. The sale could generate a sizeable recovery gain. In the coming months, we also expect 33% of STB shares held by SBV to be auctioned. This stake is set to command a higher valuation with reference to other Vietnam bank deals in recent years.
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The attached publication is marketing material and should not be regarded as a recommendation to subscribe or redeem units of the PYN Elite Fund. Before subscribing please familiarize yourself with the Key Information Document, the Prospectus and the Rules of the Fund. The material presented in this text is based on PYN Fund Management’s view of markets and investment opportunities. PYN Elite Fund (non-UCITS) invests its assets in a highly allocated manner in frontier markets and in a small number of companies. This investment approach involves a larger risk of volatility compared to ordinary broadly diversified equity investments. The value of an investment may decline substantially in unfavorable market conditions or due to an individual unsuccessful investment. It is entirely possible that the estimates of economic development or a company’s business performance presented in this presentation will not be realized as presented and they involve material uncertainties.
PYN Elite Monthly Review.pdf