VinaCapital Vietnam Opportunity Fund announced its interim report for the period 1 July 2019 to 31 December 2019. During the period, the USD NAV in total return terms declined 2.3%, while the Vietnamese index increased by 1.7%. The share price increased 2.5% in USD terms, reflecting a narrowing of the discount to NAV to 11.9% over the period. Because of the recovery of the sterling exchange rate over this half year, the sterling returns were somewhat lower.
The board has declared a dividend of 5.5c per share. The dividend will be paid to shareholders on or around 1 May 2020.
The company repurchased 1,597,500 shares, equivalent to $6.9m, over the six months, at an average discount of 15.5%, adding 4c to the USD NAV per share.
The company’s privately negotiated holdings include eight investments that are valued at $177m as of 31 January 2020. Based on the reported NAV, the implied total market capitalisation of these companies is just over $1bn.
Based on these eight investments on a consolidated basis, the company expects about 18% EBITDA growth and 20% earnings growth. The forward EV/EBITDA and P/E multiples for these companies are 6.9x and 9.6x, respectively.