Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVF4 – 01/2017


In January 2017, VF4’s Net Asset Value per share has increased by 2.83% compared to the market return of 4.87%. The main contributors for this market return in January 2017 include Banks and Food & Beverage with the returns achieved 2.71% and 1.61% respectively. In the first month of the year, the market received 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.

JSC Bank for Foreign Trade of Vietnam (HOSE:VCB) is one of the outperforming stocks that accounted for a considerable amount of VF4’s portfolio. In 2016, VCB achieved Net Profit After Tax of VND 6,845 billion, a 24% increase compared to the prior period. Total asset of the bank amounted to VND 788 thousand billion, increased by 17% since the beginning of the year. Furthermore, in 2016, VCB has been successful in resolving its bad debts with VAMC, promising a potential to achieve impressive profit growth in 2017 when they are not required to account for the provisions of those non-performing loans. In 2017, VCB has set out its target for profit before tax of VND 9,200 billion, equivalent to a 12% growth from 2016.