Vietnam stock market valuation very attractive: Pyn Elite Fund

By Ta Phu, Huong Dung
Mon, August 28, 2023 | 11:28 am GMT+7

Vietnam's stock market valuation is looking very attractive with the price-to-sales (P/S) ratio forecast to fall to below 1.2 with positive revenue growth forecasts for 2024, according to Pyn Elite Fund, a Finnish investment fund.

In a recent letter to investors, portfolio manager Petri Deryng said that the Vietnamese stock market is on a positive trajectory. Closing the session last Friday, the VN-Index, which represents the Ho Chi Minh Sock Exchange (HoSE), had reached 1,183.37 points, up 17.5% compared to the beginning of the year.

However, the Vietnamese economy still faces many difficulties in the context of declining consumption and exports, Deryng noted.

Portfolio manager Petri Deryng of Pyn Elite Fund. Photo courtesy of the fund.

Portfolio manager Petri Deryng of Pyn Elite Fund. Photo courtesy of the fund.

According to Pyn Elite, policies released by the government and the State Bank of Vietnam will determine the stock market outlook for next year. Domestic interest rates have decreased significantly and will continue to fall. Over the past eight months, the 10-year government bond yield has halved from 5% to 2.5%, reflecting a significant drop in capital interest rates in Vietnam's domestic market.

The interbank overnight interest rate has dropped to 0.17%, showing strong liquidity in the financial market. 12-month deposits made in late 2022 will mature in late fall of 2023, and will likely be channeled into higher-yield investment channels, such as stocks.

Pyn Elite Fund believed that Vietnam's economy will definitely accelerate thanks to new policies, and 2024 will again be a year of strong growth for the Vietnamese economy. The fund held that domestic cash flow will run into stocks and that market indexes will continue to recover in the near future. This optimistic sentiment may continue until 2024.

It also analyzed that Vietnam's economic downturn is closely related to interest rates and liquidity in the country. Once the economy returns to normal, the stock market will be able to trade at a P/S ratio of 2 or more. The ratio is currently only 1.35 because revenue growth in the first quarters of the year was not very positive.

In July 2023, Pyn Elite Fund's performance rate reached 5.2% thanks to the recovery of some stocks that account for a large proportion in its portfolio, including VHM of real estate giant Vinhomes, VRE of Vincom Retail, ACV of Airports Corporation of Vietnam, and MBB of MBBank. However, this figure was still lower than the VN-Index gain of 9.2%.

The three worst performing stocks in its portfolio were STB of Sacombank (-2.9%), VEA of Vietnam Engine And Agricultural Machinery Corporation (-0.3%), and CTG of VietinBank (+1.7%).

Pyn Elite Fund added that in the first half of 2023, the 16 core stocks in its portfolio had an average earnings growth of 32% year-on-year, while total returns from companies listed on the HoSE decreased 10% over the same period last year.

Comments (0)
  • Read More
Vietnam’s ‘shrimp king' Minh Phu expects to return to profit in 2025

Vietnam’s ‘shrimp king' Minh Phu expects to return to profit in 2025

Minh Phu Seafood Corporation (UPCoM: MPC), Vietnam’s leading shrimp exporter, expects net profit to reach VND997 billion ($38.03 million) this year, reversing the loss in 2024.

Companies - Tue, June 3, 2025 | 8:38 am GMT+7

CMC Corporation breaks ground on $300 mln technology hub in Hanoi

CMC Corporation breaks ground on $300 mln technology hub in Hanoi

Vietnam's leading technology firm CMC Corporation on Monday broke ground on its $300 million Hanoi CMC Creative Space (CCS Hanoi) project.

Industries - Mon, June 2, 2025 | 11:19 pm GMT+7

Thailand’s industrial output up after 9-month decline

Thailand’s industrial output up after 9-month decline

Thailand’s industrial output has turned positive for the first time in nine months, with the automotive sector rebounding after a 21-month slump, said Thai Deputy Finance Minister Paopoom Rojanasakul.

Southeast Asia - Mon, June 2, 2025 | 10:48 pm GMT+7

Singapore, France to expand cooperation in civil nuclear energy, defence technology, AI research

Singapore, France to expand cooperation in civil nuclear energy, defence technology, AI research

Singapore and France have upgraded their Strategic Partnership signed in 2012 to a Comprehensive Strategic Partnership (CSP), marking Singapore's first CSP with a European country.

Southeast Asia - Mon, June 2, 2025 | 10:47 pm GMT+7

Masan MEATLife stock jumps on continued profit momentum

Masan MEATLife stock jumps on continued profit momentum

The ticker of Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, jumped by 8.71% to VND31,200 ($1.2) per share on Monday, after it reported profit for the third consecutive quarter in Q1/2025.

Companies - Mon, June 2, 2025 | 10:34 pm GMT+7

Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms

Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms

The Becamex VSIP Binh Dinh service-urban-industrial complex in the central province of Binh Dinh is emerging as a promising destination for Thai enterprises, said its developer Becamex Binh Dinh JSC.

Industrial real estate - Mon, June 2, 2025 | 10:24 pm GMT+7

Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert

Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert

A major bottleneck in Vietnam’s electricity transition has been the termination of the feed-in-tariff (FIT) mechanism in 2021, with no suitable replacement mechanism in place, according to the director of Hanoi-based Institute of Energy Technology.

Economy - Mon, June 2, 2025 | 4:56 pm GMT+7

Vietnam Vaccine JSC launches high-quality healthcare shop chain

Vietnam Vaccine JSC launches high-quality healthcare shop chain

Vietnam Vaccine JSC (VNVC), well known for its vacciation services, on Saturday launched its VNVC Shop, a chain offering safe, high-quality healthcare products from globally recognized brands.

Companies - Mon, June 2, 2025 | 4:05 pm GMT+7

Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.

Energy - Mon, June 2, 2025 | 2:01 pm GMT+7

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

May saw a more stable picture in terms of U.S. tariff policies than April, helping lead to a renewed expansion in output and improved business confidence, says Andrew Harker, economics director at S&P Global Market Intelligence.

Economy - Mon, June 2, 2025 | 9:18 am GMT+7

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

The Ministry of Industry and Trade (MoIT) has proposed building two inter-regional renewable energy service and industry hubs in the country.

Economy - Mon, June 2, 2025 | 8:00 am GMT+7

Investors advised to take profits from stocks having risen sharply

Investors advised to take profits from stocks having risen sharply

Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.

Finance - Sun, June 1, 2025 | 8:10 pm GMT+7

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.

Companies - Sun, June 1, 2025 | 1:14 pm GMT+7

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Emall Vietnam, which owns a network of 100 high-end business shoe stores under the Pierre Cardin and Oscar brands in Vietnam, has taken over the entire Pierre Cardin shoe system in Thailand.

Companies - Sun, June 1, 2025 | 10:29 am GMT+7

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Ba Ria-Vung Tau authorities on Friday granted in-principle approvals or investment registration certificates for 53 projects, including a green light for a $400 million investment capital hike of the $5.4 billion Long Son Petrochemicals Complex.

Industries - Sun, June 1, 2025 | 8:00 am GMT+7

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Novaland, a major real estate developer in Vietnam, will simultaneously implement plans to issue bonus shares and offer ESOP (employee stock ownership plan) shares, with a total issuance rate of 5%, equivalent to more than 97 million units.

Companies - Sat, May 31, 2025 | 11:09 pm GMT+7