PYN Elite poured US $ 39 million into Vietnamese stocks
Finland-based PYN Elite from the beginning of 2020 surprised with messages such as “All-In” and forecasted long-term VN-Index up to 1,800 points. Not only is the message, the latest report shows that the fund took action when pouring a net of US $ 39 million (about VND 900 billion) into Vietnam’s stock market.
PYN Elite has often gone against foreign investors in recent years.
The net buying was more noticeable in the context that Vietnamese stocks fluctuated unpredictably and foreign investors still net withdrew to record USD 422 million in a short time if excluding the transactions of VHM and MSN. Foreigners have been net sellers from the end of February until the beginning of May, but have net bought back in recent weeks.
The proportion of PYN Elite’s cash also shows that the amount of money poured down to only 4.2% of the total management asset price, about 17 million EUR. Meanwhile, the cash ratio at the end of 2019 is 16%, equivalent to nearly 65 million EUR.
The proportion and cash value of PYN Elite decreased rapidly.
PYN Elite was founded in 1999 by PYN Fund Management. In the past, the fund mainly invested in the Thai market. However, by the beginning of 2013, the fund decided to realize the profit of investments in Thailand to pour into other markets and currently the proportion of Vietnamese stocks accounted for 96% of the portfolio.
According to the latest report as of June 15, the fund from Finland manages EUR 400 million (nearly VND 10,500 billion). Since the beginning of the year, VN-Index lost 13.4% points while the fund’s portfolio decreased 8%.
In its portfolio, VEAM is still the largest investment with the proportion of 11.2%. Next are bank stocks and real estate.
List of 12 largest stocks of PYN Elite at 6/15.
Bank and the new taste of the fund
Bank stocks have become the favorite taste of PYN Elite and today account for the largest proportion of the fund’s asset allocation with 31.4%, far removed from other sectors such as industrial production or real estate. .
Banks account for the largest proportion in the fund’s portfolio.
In the fund’s perspective, the value of bank stocks in the portfolio may even double in the next few years. PYN said the bank shares had fair value in January 2020 before being sold off by Covid-19. These stocks held firm for the first few weeks but plummeted later on forecasts of economic prospects and rising bad debts.
Currently the largest bank stocks of the fund are HDBank (HDB – density 9.6%), TPBank (TPB – proportion 9.6%) and VietinBank (CTG – proportion 9%). In addition, the fund has invested in some new investments such as LienVietPostBank (UPCoM: LPB) and International Bank (UPCoM: VIB).
In addition to banks, PYN Elite also has new investment tastes, including electricity producer PV Power (HoSE: POW). The sharp fall in stock prices has allowed the fund to buy company shares at attractive prices and believe that corporate issues will be resolved in the next few months.
Aviation stocks also attract this organization. The fund said that Vietnam Airport Corporation (ACV) has great long-term growth prospects and thinks that this is a real blue-chip stock of Vietnam. In addition, the fund also bought a large amount of Saigon Cargo (SCS) from another investment fund when the price was attractive enough.
PYN Elite’s new allocation investments.
Sell off some long-term investments
Besides the new allocation, PYN Elite also aggressively sold many stocks. The most significant reduction in the proportion of MWG from 17.1% to 5.1% today has brought a large amount of cash to the fund to reallocate the portfolio. The fund said that it did not like to repurchase this stock even though the market price has dropped sharply because this is the stock that has no foreign room, so the buyer must pay a surplus of more than 40%.
The Fund also sold a large amount of CII construction company stock due to fluctuations in business operations, this profitable opportunity may seek alternatives in more quality stocks.
Similarly, the fund has reduced its investment position in some other businesses such as Phu Tai (HoSE: PTB) and TNG textiles due to export activities facing great challenges. The fund sells VNE and HUT shares due to uncertainty about their core business. The fund also sells Dabaco (HoSE: DBC) when stock prices rise too aggressively because of high pig prices. PC1 shares are also sold at high prices when a domestic investor wants to increase their ownership.
According to research by PYN Elite, the financial situation of Vietnamese companies meets the challenges of growth in the next few years. This is the factor that the fund focuses on analyzing for investment, so the fund believes that portfolio quality is improving.
Vietnamese companies have better debt / equity ratios than the average.