Following a 16.2% drop, the market rebounded over the rest of April on tariff deferral and strong Q1 results. VN-Index closed -6.2%, while PYN Elite -4.5% MoM, supported by gains in HVN (+9.3%), STB (+2.1%), and MWG (+3.1%). Notably, 96% of our portfolio is in domestic-focused sectors which are not directly impacted by tariffs. The sell-off enabled us to accumulate quality positions at deep discounts. Most listed companies upheld optimistic growth targets despite tariffs, expressing confidence in Vietnam’s economic resilience. Vietnam started trade negotiations with the U.S. on May 7th. The smooth launch of the stock trading platform KRX on May 5th was a key milestone, paving the way for market modernization & features such as CCP and intraday trading.
Macro: The economy demonstrated resilient growth, with retail sales +11.1% YoY, exports +20% YoY, and industrial production +8.9% YoY. Disbursed FDI +7.9% YoY, as key electronics manufacturers reaffirmed long-term commitment to Vietnam. While the World Bank trimmed Vietnam 2025 GDP forecast to 5.8% due to tariffs, the government is determined to achieve its 8% growth target. Alongside advancing public investment, growth-support policies were announced. A VAT reduction extension to 2026 has been proposed. The Central Party Committee launched Resolution 68 on Private Sector Development with reforms, incentives and tax cuts, aimed at accelerating private sector’s growth to 10-12% p.a. through 2030.
PYN Elite stock of the month: SHS (Saigon – Hanoi Securities)
Founded in 2007, SHS has built a strong reputation as a top-performing proprietary trading firm. With a sharp focus on stock-picking, its portfolio consistently features market outperformers. In Q1’25, SHS ranked 3rd in net profit among all securities firms, despite having only the 9th largest equity, achieving 36% of its 2025 profit target. Backed by a strong balance sheet and a low net debt/equity of 20%, SHS has ample headroom to expand margin lending book, aiming to re-enter top 10 market share. Despite an impressive 5-Yr Avg. ROE of 19%, SHS trades at a low 0.9x P/B, well below industry average of 1.8x. We have capitalized on the market downturn to build a sizable position at attractive discounts.