“In our opinion, it is the stocks of companies that focus on the domestic market in Vietnam that will have strong growth potential in the next 6 to 12 months, although the next few weeks may still face many difficulties. “, said Mr. Petri Deryng, Director of PYN Elite Fund.
Mr. Petri Deryng, Director of PYN Elite Fund
In a recent letter to investors, Mr. Petri Deryng, Director of PYN Elite Fund, said that Vietnam is being heavily affected by the 4th Covid-19 wave. The infection rate has increased significantly since May. 4 and the number of new cases per day has now exceeded 5,000.
In that context, the VN-Index dropped rapidly from 1,420 points at the beginning of July to 1,250 points, equivalent to a decrease of 12%.
City. Ho Chi Minh City and neighboring provinces are particularly affected by social distancing measures. Similarly, Hanoi also applies the distance order. There have also been outbreaks in some individual industrial zones.
PYN Eltie Fund forecasts new infections will be more stable from August.
Although vaccination rates in Vietnam are still low, recent efforts have significantly improved vaccination rates and vaccine availability. Currently, Vietnam has about 5 million people vaccinated, accounting for about 5% of the population, of which the number of people who have received 2 doses is still less than 1%. The Vietnamese government said it is ready for a plan to immunize 1 million people a day, with a plan to reach a vaccination rate of 60-70% by the end of this year.
Mr. Petri Deryng assessed that social distancing measures will slow down economic growth in the third quarter. The growth forecast of listed companies in 2021 will therefore have to be adjusted, although the profit growth is still expected at about 30-40% compared to the previous year. The VN-Index is currently trading at a forward P/E in 2021 at 14.5x, P/E in 2022 at 12x and P/E in 2023 at 9.8x.
According to Mr. Petri Deryng, the Covid-19 wave is having a negative impact on the portfolio of PYN Elite Fund. However, he believes that the Vietnamese government will be able to both limit the increase in infections and speed up vaccination in a reasonable amount of time. This should help economic growth pick up again in the fall and the stock market will resume its uptrend.
“In our opinion, it is the stocks of companies that focus on the domestic market in Vietnam that will have strong growth potential in the next 6 to 12 months, although the next few weeks may still face many difficulties. “, the director of PYN Elite Fund stated.
Mr. Petri Deryng also revealed that he will register to deposit money into PYN Elite Fund in the fund’s fundraising round at the end of July.
Source: stockbiz.vn – Translated by fintel.vn