Edison Investment Research Limited Updates on VietNam Holding's Performance and New Redeemable Shares Initiative

On April 12, 2024, Edison Investment Research Limited announced that VietNam Holding (VNH) achieved a significant net asset value (NAV) per share total return (TR) of 15.8% in 2023, translating to 22.4% in US dollar terms. This figure notably surpassed the Vietnam All Share index (VNAS) return of 11.7% and that of VNH's direct competitors. The company's management expresses confidence in the continued strength of Vietnamese equities in 2024, forecasting an average yearly earnings per share (EPS) growth of 20%.

VNH introduced a share redemption facility in addition to its routine share buybacks, allowing shareholders to redeem shares at NAV each September. This move has contributed to a significant shrink in VNH's share discount to NAV, now at 3.0% as opposed to the three-year average of 14.1%. Since the beginning of 2024, VNH's portfolio has already reported a 10.5% NAV TR in the first two months, maintaining its long-term outperformance with a five-year average annual return of 13.2% against the index’s 8.9%.

The newly introduced redemption facility provides more liquidity and flexibility for shareholders, with the incentive of a fee-free redemption for holdings over two years. A 2-3% redemption fee is applicable for shares held for less than two years, benefiting the remaining shareholders, whereas shares held for less than six months are ineligible for redemption. This strategic initiative supports shareholder value and could further increase interest in VNH's offering.