VFMVF1 – 02/2017
As of the end of February, VNIndex continue to rally by 1.9%, mostly attributed to the price increase of Real Estate, Capital Goods and Transportation stocks, especially the Viet Jet Air Stock (HOSE: VJC), which contribute 0.42% to the price increase of VN Index. VF1 has return close to market performance, achieved 1.8% in February.
Viet Jet Air is the only private company operates in the low-cost airline industry of Vietnam with domestic market share at 41.5%, approximately equal to Vietnam Airlines’s share of 42.5% in 2016. In 2017, the company plan to increase its revenue to VND 42,000 billion and net profit of 3,400 billion, equivalent to a growth rate of 53% and 48% respectively. VF1 has invested in VJC due to its attractive valuation and prospective high growth in the near future.
At 28 February 2017, weighting in cash and cash equivalent of VF1 decreased from 18.4% to 13.7% as the fund invested into new stocks in Pharmaceutical and Transportation industry as well as increased the weighting of current holdings.