VietNam Holding - Steady outperformance and solid fundamentals

VietNam Holding (VNH) posted a solid net asset value (NAV) per share total return (TR) in the first seven months of 2024 (7M24) of 14.5% in US dollar terms, which was ahead of the Vietnam All Share Index’s (VNAS’s) return of 8.1%. Over the last 10 years, VNH has delivered a c 10% return pa and consistently outperformed VNAS by c 3pp pa. The index in turn performed ahead of both emerging and frontier markets averages. Vietnamese equities offer a combination of undemanding valuations (a 20% discount to 10-year historical average based on one-year forward multiples) and solid earnings outlook, with LSEG Data & Analytics consensus expectations of 28% EPS growth over the next 12 months for local equities and 6% GDP growth in Vietnam in 2024. VNH’s shares trade at a 10% discount to NAV.