Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVF1 – 01/2017


In the first month of 2017, the market receives positive news from the banking sector where the Government has stated their attempt to resolve the bad debts in 2017 and to consider lifting the foreign ownership limits for each bank, case by case. Thus, the banking stocks had impressive price appreciation since the beginning of this year, surpassed the market return by a wide gap. Several notable banking stocks include VCB (+10.86%), CTG (+28.48%) and BID ( +19.01%) has strongly appreciated compared to 2016. Besides, the Food & Beverage sector with the market leaders such as Sabeco (HOSE:SAB) and Vinamilk (HOSE:VNM) also contribute a major portion to the market upward movement as a result of net-buy action from the foreign investors. Banking and F&B Sector were also the major contributors of VF1’s return of 2.7% in January. However, this return is lower than the market return of VN-Index (+4.87%).

At the moment, a lot of companies in VF1’s portfolio had published their outstanding business results in 2016. For instances, Mobile World Investment Corporation (HOSE:MWG) achieved VND 45,000 billion in revenue and VND 1,577 billion of Net profit after tax, increased by 77% and 47% respectively in comparison to 2015. The company also opened 574 new stores country-wide, increase the total number of stores to 1,207, in which there are 951 stores belong to thegioididong.com. Under the circumstances that markets for mobile phones and consumer electronic appliances still having potential of high growth, MWG has set out a new plan for 2017, which indicates 42% growth of revenue and 39% growth of Net profit after tax compared to 2016.

In January 2017, VF1 has disbursed and invest into high-growth sector such as Retailing, Food & Beverage, Banking and Information Technology. Thus, the allocation in cash & cash equivalent of VF1 decreased from 31.2% NAV to 19.5% NAV.