VietNam Holding Limited · LSE:VNH
VietNam — Investor Presentation (November 2021)
37 slides from VietNam's investor presentation, Nov 1, 2021
Slide 1: Vietnam Holding Limited
Vietnam Holding Limited 1st November 2021
Slide 2: Vietnam Holding Ltd Overview
Vietnam Holding Ltd Overview Closed-end fund Partner owned +16.8%* p.a. over 10 years c.£95m listed on LSE Manager with Market cap Main Market locally based team Vietnam All Share +13.7% ** p.a. Nimble stock selection, actively managed, high-conviction portfolio with integrated ESG Thematic exposure
Slide 3: Vietnam at a glance: Asia's emerging champion
Vietnam at a glance Asia’s emerging champion Population 97.6mn 32.5 years 85% people Median age Ethnic Kinh 15th largest country Youngest in ASEAN Stable socio-political environment 98% 70% 36% Literacy rate Internet penetration Urbanization 2nd highest among top 72m social media users Japan 10 inve
Slide 4: Portfolio: Growth at a Reasonable Price (GARP)
Portfolio Growth at a Reasonable Price (GARP) VNH EPS Growth (2018-2022) 60% VNH VNAS 48.8% Investment Criteria 50% 40% • Compounding long-term EPS growth 30% 27.8% 25% 24.2% 19.1% 20.2% • Attractive valuation with built-in safety margin 20% 17.6% 16% 10% 5.4% • Strong balance sheet and cash flow ma
Slide 5: Contents
Contents 1. Vietnam: Asia’s Emerging Champion 2. Vietnam Equity Market: Strong Performance Despite COVID 3. Vietnam Holding Portfolio: Sustainable Growth 4. Investment Cases: Disciplined Approach – Strong Track Record 5. Fund Manager: Responsible Investor and Vietnam Specialist 6. Appendix 5
Slide 6: One of the Highest GDP Growth Countries in the World
Vietnam Macro One of the Highest GDP Growth Countries in the World High and stable GDP growth over last 30 years GDP per capita accelerating (USD) 10% GDP per capita growth 9% 3000% Malaysia 8% Philippines 2500% Thailand 7% 2000% Vietnam 6% 1500% 5% 4% 1000% 3% 500% 2% 0% 1% 2016 2019 2018 2015 2012
Slide 7: One of the Highest GDP Growth Countries in the World
Vietnam Macro One of the Highest GDP Growth Countries in the World After years of high growth, GDP reached a sizable value Positive GDP growth in years of Covid19 GDP total of Vietnam (USDbn) GDP Growth of selected ASEAN countries in 2020 - 2021F 8% 600 530 6% 5.2% 4.3% 500 3.7% 3.8% 4% 3.3% 2.9% 2%
Slide 8: Favorable Demographics Driving the Opportunities
Vietnam Favorable Demographics Driving the Opportunities Among highest Employment to Population Ratio (%) in the world 80% 76% 65% • Young and large population. 58% 58% 60% 54% • Industrious workforce. 40% • Manufacturing labor cost is just about half of China and 20% two-thirds of Mexico. 0% Vietna
Slide 9: Supportive Policies for A More Open Economy
Vietnam Supportive Policies for A More Open Economy Increasing foreign trade thanks to FTAs 2018 2022E • Total trade as of percentage of GDP doubled to 200% 2007 2014 Join WTO Vietnam-Chile FTA CPTPP (previously TPP) RCEP since 2000. • Newly signed CPTPP (Comprehensive and Progressive Agreement of T
Slide 10: Rapidly Growing Consumer Middle-class
Vietnam Rapidly Growing Consumer Middle-class Emerging middle class population (consumption >USD15/day) 60% 50% 50% • 35mn more middle class consumers by 2035. +35mn 40% people • Car ownership doubled over last 5 years. 30% 20% • Consumer loans increased by 5x to US$51bn over last 13% 10% 8% 5 years
Slide 11: Strong Macroeconomic Conditions, Supporting Corporate Earnings Growth
Vietnam Strong Macroeconomic Conditions, Supporting Corporate Earnings Growth Record high FX reserve (USD bn) Healthy current account USD bn Current Account Balance (LHS) 110 FX Reserves (LHS) 4.2 5 16 Current Account as % of GDP (RHS) 8% 13.9 Foreign reserves in months of imports (RHS) 12.8 90 3.7
Slide 12: Contents
1. Vietnam: Asia’s Emerging Champion 2. Vietnam Equity Market: Strong Performance Despite COVID 3. Vietnam Holding Portfolio: Sustainable Growth 4. Investment Cases: Disciplined Approach – Strong Track Record 5. Fund Manager: Responsible Investor and Vietnam Specialist 6. Appendix 12
Slide 13: Equity Market: Rise of the Retail Investor
Vietnam Equity Market Rise of the Retail Investor Market capitalization (USD bn) Liquidity expanding rapidly US$ mn 1,613 1,637 1641 1,800 1600 1,800 300 1,545 302 Liquidity (RHS) 1,418 1,600 1,600 Total Market Cap (LHS) 1400 250 VNIndex (LHS) Number of stocks (RHS) 1,400 1,400 1200 229 1,200 1,200
Slide 14: Healthy Capital Market Development
Vietnam Equity Market Healthy Capital Market Development Valuation remains attractive compared to regional peers With higher profitability 2.5 20% VNAS, 1.0% 17.4% ROE ROA 2.3 15% 13.0% Price to Book (x) 2.1 11.0% 10% 9.4% 1.9 MSCI EM, 2.4% 7.5% 7.2% 7.6% Philippines, 1.6% 5% 1.7 3.0% 2.6% Thailand,
Slide 15: Largest market in the MSCI Frontier Market Index
Vietnam Equity Market Largest market in the MSCI Frontier Market Index Vietnam is the largest weighting in the MSCI FM Index …and the largest market capitalization Weighting of MSCI Frontier Markets Index (%) Market capitalization of MSCI FMs (USD bn) 350 302 Vietnam 300 29% 250 Others 37% 200 150 1
Slide 16: MSCI EM Index Inclusion remains elusive for now
Vietnam Equity Market MSCI EM Index Inclusion remains elusive for now, yet key impediments are being addressed Frontier Market Emerging Market June 2022 June 2023 June 2024 Phase I: Phase II: Phase III: Review for Shortlist - Market under Change in Potential Shortlist Consideration for Upgrade Class
Slide 17: Healthy Market Development
Vietnam Equity Market Healthy Market Development • Introduction of derivatives market • VN30 Index futures were introduced in July 2017. • Covered warrants were introduced in July 2019. • Bond futures were introduced in July 2019. • Non-Voting Depositary Receipt (NVDR) is being considered. • Local E
Slide 18: Contents
1. Vietnam: Asia’s Emerging Champion 2. Vietnam Equity Market: Strong Performance Despite COVID 3. Vietnam Holding Portfolio: Sustainable Growth 4. Investment Cases: Disciplined Approach – Strong Track Record 5. Fund Manager: Responsible Investor and Vietnam Specialist 6. Appendix 18
Slide 19: Investment Philosophy and Approach
VNH Portfolio Investment Philosophy and Approach • Combining top-down and bottom-up strategies for a balanced portfolio. Top down – Bottom • Bottom-up: Extensive analysis and disciplined investment process. up • Top-down: Portfolio structuring process integrating macroeconomic forecasts into asset a
Slide 20: High Conviction/Concentrated Portfolio Across Key Themes
VNH Portfolio High Conviction/Concentrated Portfolio Across Key Themes of Domestic Consumption, Urbanization and Industrialization Top Ten Holdings Sector Allocation Company % NAV Banks 24% FPT 9.7% Real Estate 19% Hoa Phat Group 8.7% Mobile World 7.7% Financial Services 16% VP Bank 6.5% Industrial
Slide 21: High Active Weight (70%) with Median Cap of US$1,218m
VNH Portfolio High Active Weight (70%) with Median Cap of US$1,218m VNH Portfolio VN All Share Index 34.4% 0.0% Large Cap (>US$1bn) Mid & Small Cap (<US$1bn) Cash 24.9% 75.1% 65.6% Source: Dynam Capital, Bloomberg; Data as of 31 Oct 2021 21
Slide 22: The top performing fund in the top performing market
VNH Portfolio The top performing fund in the top performing market VNH NAV MSCI FTSE VNAS (USD) per Share Emerging Market All-Share YTD 58.2% 45.2% -2.1% 12.6% 1 year 90.1% 75.8% 14.6% 38.4% 3 years 81.7% 82.2% 35.1% 15.2% 10 years 338.0% 241.9% 25.2% 19.0% Source: Dynam Capital, Bloomberg; Data as
Slide 23: 10-year NAV per Share Performance
VNH Portfolio 10-year NAV per Share Performance (Oct 2011 – Oct 2021) 350% NAV per share (USD) Vietnam All Share Index (USD) 300% VNI (USD) MSCI EM 250% MSCI FM 200% 150% 100% 50% 0% -50% Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20 Oct-21 Source: Dynam Capital, Bloomberg; D
Slide 24: Contents
1. Vietnam: Asia’s Emerging Champion 2. Vietnam Equity Market: Strong Performance Despite COVID 3. Vietnam Holding Portfolio: Sustainable Growth 4. Investment Cases: Disciplined Approach – Strong Track Record 5. Fund Manager: Responsible Investor and Vietnam Specialist 6. Appendix 24
Slide 25: FPT Corporation: Digitalisation Champion
FPT Corporation (FPT: HOSE) Digitalisation Champion: US$3.7 bn Market Cap Investment Case Key financial highlights 2021F Investment summary • FPT is transforming from an IT services company to an end-to-end EPS growth 21.2% Date of investment Jan-07 digital solutions provider with a f/c CAGR of 17%
Slide 26: Mobile World JSC: Retail Champion
Mobile World JSC (MWG: HOSE) Retail Champion: US$ 3.9 bn Market Cap Investment summary Key financial highlight 2021F Investment Case Date of investment May-14 EPS growth 13.3% • MWG is the biggest retailer in Vietnam (by revenue) with a 50% Invested amount (USD PER 20.1 market share in the smartphon
Slide 27: Gemadept Corporation: Logistics Champion
Gemadept Corporation(GMD: HOSE) Logistics Champion: US$0.7bn Market Cap Investment summary Key financial highlights 2021F Investment Case Date of investment Aug-19 EPS growth 61.6% • With the commencement of its latest deep-water port – Invested amount (USD mn) 5.5 PER 28.6 Gemalink – in January 202
Slide 28: Contents
1. Vietnam: Asia’s Emerging Champion 2. Vietnam Equity Market: Strong Performance Despite COVID 3. Vietnam Holding Portfolio: Sustainable Growth 4. Investment Cases: Disciplined Approach – Strong Track Record 5. Fund Manager: Responsible Investor and Vietnam Specialist 6. Appendix 28
Slide 29: Dynam Capital: Experienced Managing Partners
Dynam Capital Experienced Managing Partners Craig Martin Chairman • Over 25-years investment experience in Vietnam and South East Asia • Previously Head of Private Equity for Prudential Vietnam (now Eastspring) • Former co-CEO of CapAsia managing cUSD 350m across South East Asia • Founding team memb
Slide 30: Dedicated Local Team with Sole Focus on Investment Research and Management
Dynam Capital Dedicated Local Team with Sole Focus on Investment Research and Management Investment Research Portfolio Management Operations Nguyen Nhu Yen Minh Nguyen Hoang Thanh Truong Hai Hung Senior Investment Manager Portfolio Manager Chief Operating Officer • 20-year experience in public and •
Slide 31: Leading edge of responsible investing in Vietnam
Dynam Capital Leading edge of responsible investing in Vietnam Responsible investing drives sustainable growth and manages downside risk Integrated into established investment process: • Initial Screening with Dynam’s ESG exclusion list • Proprietary ESG scoring matrix and database • Detailed ESG du
Slide 32: Contents
1. Vietnam: Asia’s Emerging Champion 2. Vietnam Equity Market: Strong Performance Despite COVID 3. Vietnam Holding Portfolio: Sustainable Growth 4. Investment Cases: Disciplined Approach – Strong Track Record 5. Fund Manager: Responsible Investor and Vietnam Specialist 6. Summary and Q&A 32
Slide 33: Why Now?
Why Now? Expanding capital markets, increasing liquidity, inflection point in economic growth 53.07% 50% FTSE All-Share VNIndex • Top Performing Stock Market Globally: Vietnam’s stock market rose by 33% YTD and has outperformed China and India over the last five years. 30% • Attractive Valuations: P
Slide 34: Why Vietnam Holding?
Why Vietnam Holding? Closed-end fund Partner owned +16.8%* p.a. over 10 years c.£95m listed on LSE Manager with Market cap Main Market locally based team Vietnam All Share +13.7% ** p.a. Nimble stock selection, actively managed, high-conviction portfolio with integrated ESG Thematic exposures: 70% A
Slide 35: Product Features
Vietnam Holding Product Features Vietnam Holding Limited LSE: VNH Inception June 2006 Investment Universe Equities in Vietnam ISIN / BIC Code GG00BJQZ9H10 / SCBLSGSG Fund Type Closed-End / Active management Base Currency USD with GBP quote Style Growth At a Reasonable Price/ESG Integration Fund Size
Slide 36: Disclaimer
Disclaimer This presentation relates to Vietnam Holding Limited (the "Company") and has been prepared by Dynam Capital, Ltd. ("Dynam"). This presentation is for information and discussion purposes only and should not be considered to be an offer or solicitation of an offer to buy or sell shares in t
Slide 37: Contact us
Contact us: Craig Martin Vu Quang Thinh Chairman CIO craig@dynamcapital.com thinh.vu@dynamcapital.com www.dynamcapital.com
Vietnam Holding — Investor Presentation (November 2021) on 6ix