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MEKONG CAPITAL – 1Q15 NEWSLETTER
for the period ended 31 March 2015
SPOTLIGHT ON MEKONG CAPITAL
SPOTLIGHT ON INVESTEE COMPANIES
SPOTLIGHT ON MEKONG CAPITAL
PEI FRONTIER MARKET
FIRM OF THE YEAR
In the first quarter, Mekong Capital was awarded Frontier Market Firm of
the year for 2014 by Private Equity International (PEI). The PEI Awards
2014 were voted by investment industry professionals, and included more
than 35,000 votes across all categories. This is the second year in a row of
Mekong Capital winning an award by PEI, after having won the Operational
Improvement Firm of the Year for the Asian Small Cap category in 2013.
SPOTLIGHT ON INVESTEE COMPANIES
MOBILEWORLD
OPENED
37
NEW STORES IN 1Q15
Sector: Retail of Mobile & Consumer Electronics
MobileWorld opened 37 new stores during the first quarter, bringing the
www.thegioididong.com
total to 380 Thegioididong.com stores and 22 Dienmayxanh.com stores
www.dienmayxanh.com
nationwide by the end of the first quarter. MobileWorld achieved net profit
of VND233 billion in the first quarter, representing a growth rate of 40%
compared to the same period last year.
map it
107
TRAPHACO
% NET PROFIT GROWTH
IN 1Q15 DUE TO
OPERATIONAL IMPROVEMENTS
Sector: Pharmaceuticals
During 1Q15, Traphaco’s net profit grew by 107% compared to 1Q14.
www.traphaco.com.vn
This extraordinary performance was driven by operational improvements
implemented during 2014, particularly the transformation of the sales
policies and the formation of direct sales relationships with over 18,000
pharmacies. As pharmacies were more incentivized to sell Traphaco’s
products, the Company sold more products per pharmacy, both existing and
newly-launched products. The reduction in the usage of sub-distributors/
wholesalers temporarily depressed performance in 2014, but eventually
resulted in much improved performance as seen in 1Q15. Revenue from inhouse manufactured products grew by 81% YoY, which was ahead of target.
map it
PHU NHUAN JEWELRY
ACHIEVED
36%
Y-O-Y NET PROFIT GROWTH
Sector: Jewelry Retail
Retail business continued its strong growth, driven by a more aggressive
www.pnj.com. vn
network expansion and strong focus on customer experience at store level.
PNJ has achieved a YoY Net Profit growth of 36% by end of 1Q15 on the
back of strong same-store-sale growth of 30% and an increase of 10% in
retail space for gold jewelry during the quarter.
map it
VIETNAM AUSTRALIA
INTERNATIONAL
SCHOOL (“VAS”)
LAUNCHED THE SUMMER DISCOVERY
2015 PROGRAM
Sector: K-12 Education
VAS introduced its first international standard summer program “Learning
www.vas.edu.vn
Through Core Values”, developed jointly by VAS and Camp Asia, who specializes
in developing and running summer camp activities for students of international
schools across Asia. The program which is rich in well-structured activities led
by certified coaches in music, arts and sports, is aimed to create opportunities
for students to practice the school’s core values (National Pride, Integrity,
Respect, Teamwork, Confidence, Excellence and Passion).
map it
NAM LONG
WELCOMES NEW CEO WITH EXTENSIVE
INTERNATIONAL EXPERTISE
Sector: Affordable Housing
Mr. Steven Chu was appointed as the CEO of Nam Long in March 2015.
www.namlongvn.com
Steven has over 30 years of experience in property development and
project management of various real estate projects in Malaysia, Australia
and Indochina. Most recently, Steven was Managing Director at Tropicana
Corporation Berhad, in Malaysia, where he managed a portfolio of more than
30 projects totaling thousands of hectares. Prior to 2011, he was with senior
management of Banyan Tree Indochina, Singapore & Vietnam and Gamuda
Land in Malaysia & Vietnam.
map it
FPT CORP.
“GO GLOBAL” STRATEGY LED TO GROWTH OF
% IN OVERSEAS REVENUES
45
Sector: IT & Telecom
FPT’s “Go Global” strategy of building up its overseas presence to become
www.fpt.com.vn
Vietnam’s first true multinational company showed good results during the
first quarter. Revenue from overseas markets achieved VND954 billion in the
first quarter, up 45% compared to the first quarter of 2014. The recruitment
of senior local talent in key overseas markets, as well as FPT’s successful
acquisition of RWE Slovakia in 2014 contributed to this growth.
In other news, FPT’s Chairman announced at the AGM an intention to spinoff FPT Trading and FPT Retail by 2017, something which is expected to
unlock significant shareholder value. FPT currently trades at a 2015 P/E
of around 9x, which is a significant discount to the average 2015 P/E of
15x for the listed companies in Vietnam with a market capitalization above
$1 billion (1). We believe the spin-off will help to remove the conglomerate
discount that FPT currently faces.
(1)
Top 5 blue chips listed companied in Vietnam with a market capitalization above $1 billion
including GAS, VNM, VIC, MSN, HPG
PERFORMANCE OF LISTED INVESTEE COMPANIES CURRENTLY HELD BY MEKONG CAPITAL’S FUNDS
Company
Name
Trading Code
Share Price
(13 May 15)
(VND)
2015 YTD
Share Price
Performance
(against 31
2015 Net
Profit Estimate
(VND Billion)(1)
2015
P/E ratio
Estimate
2015 Net Profit Percent held by
Mekong’s funds
Growth Rate
(13 May 15)
Estimate (%) (2)
Dec 14)
Traphaco
TRA
80,000
10%
211
9.4
29%
24.99%
FPT
Corporation
FPT
49,200
2%
1,902
8.9
17%
0.87%
Phu Nhuan
Jewelry
PNJ
52,000
30%
300
13.1
17%
6.57%
Intresco
ITC
7,800
4%
20
26.8
186%
20.00%
Nam Long
NLG
19,300
10%
163
15.9
70%
4.80%
Mobile
World (3)
MWG
81,000
-7%
1,028
11.0
54%
11.46%
Note:
(1) 2015 net profit estimate is Mekong Capital’s internal estimate that does not represent the official targets of investee companies or estimates
from the management teams of those companies. Mekong Capital’s estimate is subject to frequent changes as new information becomes public.
(2) This is calculated based on the audited net profit data of the investee companies for the year ended 31 December 2014.
(3) MWG share price performance is calculated against the split-adjusted price of VND87,200 in May 2015.
Contact details MEKONG CAPITAL
Capital Place, 8th floor
6 Thai Van Lung, District 1, Ho Chi Minh City, Vietnam
Tel: (84 8) 3827 3161 - Fax: (84 8) 3827 3162
E-mail: info@mekongcapital.com
www.mekongcapital.com
Some of data herein is the latest available to Mekong Capital at the date of this newsletter to be circulated. It might subject to be changed/updated lately
Please click here if you cannot view this e-mail in HTML. If you wish to unsubscribe from our mailing list, please reply to unsubscribe@mekongcapital.com.
MEKONG CAPITAL – 1Q15 NEWSLETTER
for the period ended 31 March 2015
SPOTLIGHT ON MEKONG CAPITAL
SPOTLIGHT ON INVESTEE COMPANIES
SPOTLIGHT ON MEKONG CAPITAL
PEI FRONTIER MARKET
FIRM OF THE YEAR
In the first quarter, Mekong Capital was awarded Frontier Market Firm of
the year for 2014 by Private Equity International (PEI). The PEI Awards
2014 were voted by investment industry professionals, and included more
than 35,000 votes across all categories. This is the second year in a row of
Mekong Capital winning an award by PEI, after having won the Operational
Improvement Firm of the Year for the Asian Small Cap category in 2013.
SPOTLIGHT ON INVESTEE COMPANIES
MOBILEWORLD
OPENED
37
NEW STORES IN 1Q15
Sector: Retail of Mobile & Consumer Electronics
MobileWorld opened 37 new stores during the first quarter, bringing the
www.thegioididong.com
total to 380 Thegioididong.com stores and 22 Dienmayxanh.com stores
www.dienmayxanh.com
nationwide by the end of the first quarter. MobileWorld achieved net profit
of VND233 billion in the first quarter, representing a growth rate of 40%
compared to the same period last year.
map it
107
TRAPHACO
% NET PROFIT GROWTH
IN 1Q15 DUE TO
OPERATIONAL IMPROVEMENTS
Sector: Pharmaceuticals
During 1Q15, Traphaco’s net profit grew by 107% compared to 1Q14.
www.traphaco.com.vn
This extraordinary performance was driven by operational improvements
implemented during 2014, particularly the transformation of the sales
policies and the formation of direct sales relationships with over 18,000
pharmacies. As pharmacies were more incentivized to sell Traphaco’s
products, the company sold more products per pharmacy, both existing and
newly-launched products. The reduction in the usage of sub-distributors/
wholesalers temporarily depressed performance in 2014, but eventually
resulted in much improved performance as seen in 1Q15. Revenue from inhouse manufactured products grew by 81% YoY, which was ahead of target.
map it
PHU NHUAN JEWELRY
ACHIEVED
36%
Y-O-Y NET PROFIT GROWTH
Sector: Jewelry Retail
Retail business continued its strong growth, driven by a more aggressive
www.pnj.com. vn
network expansion and strong focus on customer experience at store level.
PNJ has achieved a YoY Net Profit growth of 36% by end of 1Q15 on the
back of strong same-store-sale growth of 30% and an increase of 10% in
retail space for gold jewelry during the quarter.
map it
VIETNAM AUSTRALIA
INTERNATIONAL
SCHOOL (“VAS”)
LAUNCHED THE SUMMER DISCOVERY
2015 PROGRAM
Sector: K-12 Education
VAS introduced its first international standard summer program “Learning
www.vas.edu.vn
Through Core Values”, developed jointly by VAS and Camp Asia, who specializes
in developing and running summer camp activities for students of international
schools across Asia. The program which is rich in well-structured activities led
by certified coaches in music, arts and sports, is aimed to create opportunities
for students to practice the school’s core values (National Pride, Integrity,
Respect, Teamwork, Confidence, Excellence and Passion).
map it
NAM LONG
WELCOMES NEW CEO WITH EXTENSIVE
INTERNATIONAL EXPERTISE
Sector: Affordable Housing
Mr. Steven Chu was appointed as the CEO of Nam Long in March 2015.
www.namlongvn.com
Steven has over 30 years of experience in property development and
project management of various real estate projects in Malaysia, Australia
and Indochina. Most recently, Steven was Managing Director at Tropicana
Corporation Berhad, in Malaysia, where he managed a portfolio of more than
30 projects totaling thousands of hectares. Prior to 2011, he was with senior
management of Banyan Tree Indochina, Singapore & Vietnam and Gamuda
Land in Malaysia & Vietnam.
map it
FPT CORP.
“GO GLOBAL” STRATEGY LED TO GROWTH OF
% IN OVERSEAS REVENUES
45
Sector: IT & Telecom
FPT’s “Go Global” strategy of building up its overseas presence to become
www.fpt.com.vn
Vietnam’s first true multinational company showed good results during the
first quarter. Revenue from overseas markets achieved VND954 billion in the
first quarter, up 45% compared to the first quarter of 2014. The recruitment
of senior local talent in key overseas markets, as well as FPT’s successful
acquisition of RWE Slovakia in 2014 contributed to this growth.
In other news, FPT’s Chairman announced at the AGM an intention to spinoff FPT Trading and FPT Retail by 2017, something which is expected to
unlock significant shareholder value. FPT currently trades at a 2015 P/E
of around 9x, which is a significant discount to the average 2015 P/E of
15x for the listed companies in Vietnam with a market capitalization above
$1 billion (1). We believe the spin-off will help to remove the conglomerate
discount that FPT currently faces.
(1)
Top 5 blue chips listed companied in Vietnam with a market capitalization above $1 billion
including GAS, VNM, VIC, MSN, HPG
PERFORMANCE OF LISTED INVESTEE COMPANIES CURRENTLY HELD BY MEKONG CAPITAL’S FUNDS
Company
Name
Trading Code
Share Price
(13 May 15)
(VND)
2015 YTD
Share Price
Performance
(against 31
2015 Net
Profit Estimate
(VND Billion)(1)
2015
P/E ratio
Estimate
2015 Net Profit Percent held by
Mekong’s funds
Growth Rate
(13 May 15)
Estimate (%) (2)
Dec 14)
Traphaco
TRA
80,000
10%
211
9.4
29%
24.99%
FPT
Corporation
FPT
49,200
2%
1,902
8.9
17%
0.87%
Phu Nhuan
Jewelry
PNJ
52,000
30%
300
13.1
17%
6.57%
Intresco
ITC
7,800
4%
20
26.8
186%
20.00%
Nam Long
NLG
19,300
10%
163
15.9
70%
4.80%
Mobile
World (3)
MWG
81,000
-7%
1,028
11.0
54%
11.46%
Note:
(1) 2015 net profit estimate is Mekong Capital’s internal estimate that does not represent the official targets of investee companies or estimates
from the management teams of those companies. Mekong Capital’s estimate is subject to frequent changes as new information becomes public.
(2) This is calculated based on the audited net profit data of the investee companies for the year ended 31 December 2014.
(3) MWG share price performance is calculated against the split-adjusted price of VND87,200 in May 2015.
Contact details MEKONG CAPITAL
Capital Place, 8th floor
6 Thai Van Lung, District 1, Ho Chi Minh City, Vietnam
Tel: (84 8) 3827 3161 - Fax: (84 8) 3827 3162
E-mail: info@mekongcapital.com
www.mekongcapital.com
Some of data herein is the latest available to Mekong Capital at the date of this newsletter to be circulated. It might subject to be changed/updated lately
Please click here if you cannot view this e-mail in HTML. If you wish to unsubscribe from our mailing list, please reply to unsubscribe@mekongcapital.com.
MEKONG CAPITAL – 1Q15 NEWSLETTER
for the period ended 31 March 2015
SPOTLIGHT ON MEKONG CAPITAL
SPOTLIGHT ON INVESTEE COMPANIES
SPOTLIGHT ON MEKONG CAPITAL
PEI FRONTIER MARKET
FIRM OF THE YEAR
In the first quarter, Mekong Capital was awarded Frontier Market Firm of
the year for 2014 by Private Equity International (PEI). The PEI Awards
2014 were voted by investment industry professionals, and included more
than 35,000 votes across all categories. This is the second year in a row of
Mekong Capital winning an award by PEI, after having won the Operational
Improvement Firm of the Year for the Asian Small Cap category in 2013.
SPOTLIGHT ON INVESTEE COMPANIES
MOBILEWORLD
OPENED
37
NEW STORES IN 1Q15
Sector: Retail of Mobile & Consumer Electronics
MobileWorld opened 37 new stores during the first quarter, bringing the
www.thegioididong.com
total to 380 Thegioididong.com stores and 22 Dienmayxanh.com stores
www.dienmayxanh.com
nationwide by the end of the first quarter. MobileWorld achieved net profit
of VND233 billion in the first quarter, representing a growth rate of 40%
compared to the same period last year.
map it
107
TRAPHACO
% NET PROFIT GROWTH
IN 1Q15 DUE TO
OPERATIONAL IMPROVEMENTS
Sector: Pharmaceuticals
During 1Q15, Traphaco’s net profit grew by 107% compared to 1Q14.
www.traphaco.com.vn
This extraordinary performance was driven by operational improvements
implemented during 2014, particularly the transformation of the sales
policies and the formation of direct sales relationships with over 18,000
pharmacies. As pharmacies were more incentivized to sell Traphaco’s
products, the Company sold more products per pharmacy, both existing and
newly-launched products. The reduction in the usage of sub-distributors/
wholesalers temporarily depressed performance in 2014, but eventually
resulted in much improved performance as seen in 1Q15. Revenue from inhouse manufactured products grew by 81% YoY, which was ahead of target.
map it
PHU NHUAN JEWELRY
ACHIEVED
36%
Y-O-Y NET PROFIT GROWTH
Sector: Jewelry Retail
Retail business continued its strong growth, driven by a more aggressive
www.pnj.com. vn
network expansion and strong focus on customer experience at store level.
PNJ has achieved a YoY Net Profit growth of 36% by end of 1Q15 on the
back of strong same-store-sale growth of 30% and an increase of 10% in
retail space for gold jewelry during the quarter.
map it
VIETNAM AUSTRALIA
INTERNATIONAL
SCHOOL (“VAS”)
LAUNCHED THE SUMMER DISCOVERY
2015 PROGRAM
Sector: K-12 Education
VAS introduced its first international standard summer program “Learning
www.vas.edu.vn
Through Core Values”, developed jointly by VAS and Camp Asia, who specializes
in developing and running summer camp activities for students of international
schools across Asia. The program which is rich in well-structured activities led
by certified coaches in music, arts and sports, is aimed to create opportunities
for students to practice the school’s core values (National Pride, Integrity,
Respect, Teamwork, Confidence, Excellence and Passion).
map it
NAM LONG
WELCOMES NEW CEO WITH EXTENSIVE
INTERNATIONAL EXPERTISE
Sector: Affordable Housing
Mr. Steven Chu was appointed as the CEO of Nam Long in March 2015.
www.namlongvn.com
Steven has over 30 years of experience in property development and
project management of various real estate projects in Malaysia, Australia
and Indochina. Most recently, Steven was Managing Director at Tropicana
Corporation Berhad, in Malaysia, where he managed a portfolio of more than
30 projects totaling thousands of hectares. Prior to 2011, he was with senior
management of Banyan Tree Indochina, Singapore & Vietnam and Gamuda
Land in Malaysia & Vietnam.
map it
FPT CORP.
“GO GLOBAL” STRATEGY LED TO GROWTH OF
% IN OVERSEAS REVENUES
45
Sector: IT & Telecom
FPT’s “Go Global” strategy of building up its overseas presence to become
www.fpt.com.vn
Vietnam’s first true multinational company showed good results during the
first quarter. Revenue from overseas markets achieved VND954 billion in the
first quarter, up 45% compared to the first quarter of 2014. The recruitment
of senior local talent in key overseas markets, as well as FPT’s successful
acquisition of RWE Slovakia in 2014 contributed to this growth.
In other news, FPT’s Chairman announced at the AGM an intention to spinoff FPT Trading and FPT Retail by 2017, something which is expected to
unlock significant shareholder value. FPT currently trades at a 2015 P/E
of around 9x, which is a significant discount to the average 2015 P/E of
15x for the listed companies in Vietnam with a market capitalization above
$1 billion (1). We believe the spin-off will help to remove the conglomerate
discount that FPT currently faces.
(1)
Top 5 blue chips listed companied in Vietnam with a market capitalization above $1 billion
including GAS, VNM, VIC, MSN, HPG
PERFORMANCE OF LISTED INVESTEE COMPANIES CURRENTLY HELD BY MEKONG CAPITAL’S FUNDS
Company
Name
Trading Code
Share Price
(13 May 15)
(VND)
2015 YTD
Share Price
Performance
(against 31
2015 Net
Profit Estimate
(VND Billion)(1)
2015
P/E ratio
Estimate
2015 Net Profit Percent held by
Mekong’s funds
Growth Rate
(13 May 15)
Estimate (%) (2)
Dec 14)
Traphaco
TRA
80,000
10%
211
9.4
29%
24.99%
FPT
Corporation
FPT
49,200
2%
1,902
8.9
17%
0.87%
Phu Nhuan
Jewelry
PNJ
52,000
30%
300
13.1
17%
6.57%
Intresco
ITC
7,800
4%
20
26.8
186%
20.00%
Nam Long
NLG
19,300
10%
163
15.9
70%
4.80%
Mobile
World (3)
MWG
81,000
-7%
1,028
11.0
54%
11.46%
Note:
(1) 2015 net profit estimate is Mekong Capital’s internal estimate that does not represent the official targets of investee companies or estimates
from the management teams of those companies. Mekong Capital’s estimate is subject to frequent changes as new information becomes public.
(2) This is calculated based on the audited net profit data of the investee companies for the year ended 31 December 2014.
(3) MWG share price performance is calculated against the split-adjusted price of VND87,200 in May 2015.
Contact details MEKONG CAPITAL
Capital Place, 8th floor
6 Thai Van Lung, District 1, Ho Chi Minh City, Vietnam
Tel: (84 8) 3827 3161 - Fax: (84 8) 3827 3162
E-mail: info@mekongcapital.com
www.mekongcapital.com
Some of data herein is the latest available to Mekong Capital at the date of this newsletter to be circulated. It might subject to be changed/updated lately
Please click here if you cannot view this e-mail in HTML. If you wish to unsubscribe from our mailing list, please reply to unsubscribe@mekongcapital.com.
MEKONG CAPITAL – 1Q15 NEWSLETTER
for the period ended 31 March 2015
SPOTLIGHT ON MEKONG CAPITAL
SPOTLIGHT ON INVESTEE COMPANIES
SPOTLIGHT ON MEKONG CAPITAL
PEI FRONTIER MARKET
FIRM OF THE YEAR
In the first quarter, Mekong Capital was awarded Frontier Market Firm of
the year for 2014 by Private Equity International (PEI). The PEI Awards
2014 were voted by investment industry professionals, and included more
than 35,000 votes across all categories. This is the second year in a row of
Mekong Capital winning an award by PEI, after having won the Operational
Improvement Firm of the Year for the Asian Small Cap category in 2013.
SPOTLIGHT ON INVESTEE COMPANIES
MOBILEWORLD
OPENED
37
NEW STORES IN 1Q15
Sector: Retail of Mobile & Consumer Electronics
MobileWorld opened 37 new stores during the first quarter, bringing the
www.thegioididong.com
total to 380 Thegioididong.com stores and 22 Dienmayxanh.com stores
www.dienmayxanh.com
nationwide by the end of the first quarter. MobileWorld achieved net profit
of VND233 billion in the first quarter, representing a growth rate of 40%
compared to the same period last year.
map it
107
TRAPHACO
% NET PROFIT GROWTH
IN 1Q15 DUE TO
OPERATIONAL IMPROVEMENTS
Sector: Pharmaceuticals
During 1Q15, Traphaco’s net profit grew by 107% compared to 1Q14.
www.traphaco.com.vn
This extraordinary performance was driven by operational improvements
implemented during 2014, particularly the transformation of the sales
policies and the formation of direct sales relationships with over 18,000
pharmacies. As pharmacies were more incentivized to sell Traphaco’s
products, the Company sold more products per pharmacy, both existing and
newly-launched products. The reduction in the usage of sub-distributors/
wholesalers temporarily depressed performance in 2014, but eventually
resulted in much improved performance as seen in 1Q15. Revenue from inhouse manufactured products grew by 81% YoY, which was ahead of target.
map it
PHU NHUAN JEWELRY
ACHIEVED
36%
Y-O-Y NET PROFIT GROWTH
Sector: Jewelry Retail
Retail business continued its strong growth, driven by a more aggressive
www.pnj.com. vn
network expansion and strong focus on customer experience at store level.
PNJ has achieved a YoY Net Profit growth of 36% by end of 1Q15 on the
back of strong same-store-sale growth of 30% and an increase of 10% in
retail space for gold jewelry during the quarter.
map it
VIETNAM AUSTRALIA
INTERNATIONAL
SCHOOL (“VAS”)
LAUNCHED THE SUMMER DISCOVERY
2015 PROGRAM
Sector: K-12 Education
VAS introduced its first international standard summer program “Learning
www.vas.edu.vn
Through Core Values”, developed jointly by VAS and Camp Asia, who specializes
in developing and running summer camp activities for students of international
schools across Asia. The program which is rich in well-structured activities led
by certified coaches in music, arts and sports, is aimed to create opportunities
for students to practice the school’s core values (National Pride, Integrity,
Respect, Teamwork, Confidence, Excellence and Passion).
map it
NAM LONG
WELCOMES NEW CEO WITH EXTENSIVE
INTERNATIONAL EXPERTISE
Sector: Affordable Housing
Mr. Steven Chu was appointed as the CEO of Nam Long in March 2015.
www.namlongvn.com
Steven has over 30 years of experience in property development and
project management of various real estate projects in Malaysia, Australia
and Indochina. Most recently, Steven was Managing Director at Tropicana
Corporation Berhad, in Malaysia, where he managed a portfolio of more than
30 projects totaling thousands of hectares. Prior to 2011, he was with senior
management of Banyan Tree Indochina, Singapore & Vietnam and Gamuda
Land in Malaysia & Vietnam.
map it
FPT CORP.
“GO GLOBAL” STRATEGY LED TO GROWTH OF
% IN OVERSEAS REVENUES
45
Sector: IT & Telecom
FPT’s “Go Global” strategy of building up its overseas presence to become
www.fpt.com.vn
Vietnam’s first true multinational company showed good results during the
first quarter. Revenue from overseas markets achieved VND954 billion in the
first quarter, up 45% compared to the first quarter of 2014. The recruitment
of senior local talent in key overseas markets, as well as FPT’s successful
acquisition of RWE Slovakia in 2014 contributed to this growth.
In other news, FPT’s Chairman announced at the AGM an intention to spinoff FPT Trading and FPT Retail by 2017, something which is expected to
unlock significant shareholder value. FPT currently trades at a 2015 P/E
of around 9x, which is a significant discount to the average 2015 P/E of
15x for the listed companies in Vietnam with a market capitalization above
$1 billion (1). We believe the spin-off will help to remove the conglomerate
discount that FPT currently faces.
(1)
Top 5 blue chips listed companied in Vietnam with a market capitalization above $1 billion
including GAS, VNM, VIC, MSN, HPG
PERFORMANCE OF LISTED INVESTEE COMPANIES CURRENTLY HELD BY MEKONG CAPITAL’S FUNDS
Company
Name
Trading Code
Share Price
(13 May 15)
(VND)
2015 YTD
Share Price
Performance
(against 31
2015 Net
Profit Estimate
(VND Billion)(1)
2015
P/E ratio
Estimate
2015 Net Profit Percent held by
Mekong’s funds
Growth Rate
(13 May 15)
Estimate (%) (2)
Dec 14)
Traphaco
TRA
80,000
10%
211
9.4
29%
24.99%
FPT
Corporation
FPT
49,200
2%
1,902
8.9
17%
0.87%
Phu Nhuan
Jewelry
PNJ
52,000
30%
300
13.1
17%
6.57%
Intresco
ITC
7,800
4%
20
26.8
186%
20.00%
Nam Long
NLG
19,300
10%
163
15.9
70%
4.80%
Mobile
World (3)
MWG
81,000
-7%
1,028
11.0
54%
11.46%
Note:
(1) 2015 net profit estimate is Mekong Capital’s internal estimate that does not represent the official targets of investee companies or estimates
from the management teams of those companies. Mekong Capital’s estimate is subject to frequent changes as new information becomes public.
(2) This is calculated based on the audited net profit data of the investee companies for the year ended 31 December 2014.
(3) MWG share price performance is calculated against the split-adjusted price of VND87,200 in May 2015.
Contact details MEKONG CAPITAL
Capital Place, 8th floor
6 Thai Van Lung, District 1, Ho Chi Minh City, Vietnam
Tel: (84 8) 3827 3161 - Fax: (84 8) 3827 3162
E-mail: info@mekongcapital.com
www.mekongcapital.com
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MEKONG CAPITAL – 1Q15 NEWSLETTER
for the period ended 31 March 2015
SPOTLIGHT ON MEKONG CAPITAL
SPOTLIGHT ON INVESTEE COMPANIES
SPOTLIGHT ON MEKONG CAPITAL
PEI FRONTIER MARKET
FIRM OF THE YEAR
In the first quarter, Mekong Capital was awarded Frontier Market Firm of
the year for 2014 by Private Equity International (PEI). The PEI Awards
2014 were voted by investment industry professionals, and included more
than 35,000 votes across all categories. This is the second year in a row of
Mekong Capital winning an award by PEI, after having won the Operational
Improvement Firm of the Year for the Asian Small Cap category in 2013.
SPOTLIGHT ON INVESTEE COMPANIES
MOBILEWORLD
OPENED
37
NEW STORES IN 1Q15
Sector: Retail of Mobile & Consumer Electronics
MobileWorld opened 37 new stores during the first quarter, bringing the
www.thegioididong.com
total to 380 Thegioididong.com stores and 22 Dienmayxanh.com stores
www.dienmayxanh.com
nationwide by the end of the first quarter. MobileWorld achieved net profit
of VND233 billion in the first quarter, representing a growth rate of 40%
compared to the same period last year.
map it
107
TRAPHACO
% NET PROFIT GROWTH
IN 1Q15 DUE TO
OPERATIONAL IMPROVEMENTS
Sector: Pharmaceuticals
During 1Q15, Traphaco’s net profit grew by 107% compared to 1Q14.
www.traphaco.com.vn
This extraordinary performance was driven by operational improvements
implemented during 2014, particularly the transformation of the sales
policies and the formation of direct sales relationships with over 18,000
pharmacies. As pharmacies were more incentivized to sell Traphaco’s
products, the Company sold more products per pharmacy, both existing and
newly-launched products. The reduction in the usage of sub-distributors/
wholesalers temporarily depressed performance in 2014, but eventually
resulted in much improved performance as seen in 1Q15. Revenue from inhouse manufactured products grew by 81% YoY, which was ahead of target.
map it
PHU NHUAN JEWELRY
ACHIEVED
36%
Y-O-Y NET PROFIT GROWTH
Sector: Jewelry Retail
Retail business continued its strong growth, driven by a more aggressive
www.pnj.com. vn
network expansion and strong focus on customer experience at store level.
PNJ has achieved a YoY Net Profit growth of 36% by end of 1Q15 on the
back of strong same-store-sale growth of 30% and an increase of 10% in
retail space for gold jewelry during the quarter.
map it
VIETNAM AUSTRALIA
INTERNATIONAL
SCHOOL (“VAS”)
LAUNCHED THE SUMMER DISCOVERY
2015 PROGRAM
Sector: K-12 Education
VAS introduced its first international standard summer program “Learning
www.vas.edu.vn
Through Core Values”, developed jointly by VAS and Camp Asia, who specializes
in developing and running summer camp activities for students of international
schools across Asia. The program which is rich in well-structured activities led
by certified coaches in music, arts and sports, is aimed to create opportunities
for students to practice the school’s core values (National Pride, Integrity,
Respect, Teamwork, Confidence, Excellence and Passion).
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NAM LONG
WELCOMES NEW CEO WITH EXTENSIVE
INTERNATIONAL EXPERTISE
Sector: Affordable Housing
Mr. Steven Chu was appointed as the CEO of Nam Long in March 2015.
www.namlongvn.com
Steven has over 30 years of experience in property development and
project management of various real estate projects in Malaysia, Australia
and Indochina. Most recently, Steven was Managing Director at Tropicana
Corporation Berhad, in Malaysia, where he managed a portfolio of more than
30 projects totaling thousands of hectares. Prior to 2011, he was with senior
management of Banyan Tree Indochina, Singapore & Vietnam and Gamuda
Land in Malaysia & Vietnam.
map it
FPT CORP.
“GO GLOBAL” STRATEGY LED TO GROWTH OF
% IN OVERSEAS REVENUES
45
Sector: IT & Telecom
FPT’s “Go Global” strategy of building up its overseas presence to become
www.fpt.com.vn
Vietnam’s first true multinational company showed good results during the
first quarter. Revenue from overseas markets achieved VND954 billion in the
first quarter, up 45% compared to the first quarter of 2014. The recruitment
of senior local talent in key overseas markets, as well as FPT’s successful
acquisition of RWE Slovakia in 2014 contributed to this growth.
In other news, FPT’s Chairman announced at the AGM an intention to spinoff FPT Trading and FPT Retail by 2017, something which is expected to
unlock significant shareholder value. FPT currently trades at a 2015 P/E
of around 9x, which is a significant discount to the average 2015 P/E of
15x for the listed companies in Vietnam with a market capitalization above
$1 billion (1). We believe the spin-off will help to remove the conglomerate
discount that FPT currently faces.
(1)
Top 5 blue chips listed companied in Vietnam with a market capitalization above $1 billion
including GAS, VNM, VIC, MSN, HPG
PERFORMANCE OF LISTED INVESTEE COMPANIES CURRENTLY HELD BY MEKONG CAPITAL’S FUNDS
Company
Name
Trading Code
Share Price
(13 May 15)
(VND)
2015 YTD
Share Price
Performance
(against 31
2015 Net
Profit Estimate
(VND Billion)(1)
2015
P/E ratio
Estimate
2015 Net Profit Percent held by
Mekong’s funds
Growth Rate
(13 May 15)
Estimate (%) (2)
Dec 14)
Traphaco
TRA
80,000
10%
211
9.4
29%
24.99%
FPT
Corporation
FPT
49,200
2%
1,902
8.9
17%
0.87%
Phu Nhuan
Jewelry
PNJ
52,000
30%
300
13.1
17%
6.57%
Intresco
ITC
7,800
4%
20
26.8
186%
20.00%
Nam Long
NLG
19,300
10%
163
15.9
70%
4.80%
Mobile
World (3)
MWG
81,000
-7%
1,028
11.0
54%
11.46%
Note:
(1) 2015 net profit estimate is Mekong Capital’s internal estimate that does not represent the official targets of investee companies or estimates
from the management teams of those companies. Mekong Capital’s estimate is subject to frequent changes as new information becomes public.
(2) This is calculated based on the audited net profit data of the investee companies for the year ended 31 December 2014.
(3) MWG share price performance is calculated against the split-adjusted price of VND87,200 in May 2015.
Contact details MEKONG CAPITAL
Capital Place, 8th floor
6 Thai Van Lung, District 1, Ho Chi Minh City, Vietnam
Tel: (84 8) 3827 3161 - Fax: (84 8) 3827 3162
E-mail: info@mekongcapital.com
www.mekongcapital.com
Some of data herein is the latest available to Mekong Capital at the date of this newsletter to be circulated. It might subject to be changed/updated lately