VFMVF1 – 07/2016
In July, NAV per share of VF1 has grown by 3.6% with main contribution from companies in Food & Beverage, Materials, Banking, Capital Goods and Retail industries. Noticeably, the blue-chip stocks have had significant gains in July such as VNM (increase by 12%), DQC (+7%), BMP (+12%), MWG (+8%).
The majority of gaining stocks has impressive business results in the first 6 months of this year. The top stock in our portfolio – VNM has its revenue increased by 18.6% y/y for 1H2016, and NPAT increased by 32.7% y/y. Specifically, VNM’s revenue from domestic market increased by 20.7% due to gains in market share. In addition, the second quarter financial report of MWG has shown its revenue reached VND 19,650 billion and NPAT achieved 835 billion with the growth rates at 81% and 93% respectively, a 60% completion of this year’s plan. Noticeably, the “Green Grocery” store chain which started test-running since November last year has its average revenue per store grown from just more than 100 million per month to 696 million in May 2016. This will be the main catalyst for MWG’s growth in the future.
With regards to the Fixed Income portfolio, VF1 has actively realized its gain in the Certificates of Deposit investment, recorded a yield of 13.25%/year to switch to another 2-year Certificate of Deposits with more attractive yield.
VF1 has also realized some of its holdings which achieved target profit, increase cash and fixed income position to 30.4% from 17.3% since the end of June. Given the current market correction, this high cash position gives VF1 comparable advantage when looking for new investment opportunities.
Since the beginning of 2016, VF1 has accumulated return of 18.3% compared to VF1-Benchmark’s growth of 11.8%.
