Pyn Elite Fund significantly boosts its ‘accumulation’ of CTG, assessing Vietnamese stocks as still very cheap.

Pyn Elite Fund has just announced its October activity report with many notable points. Accordingly, in October, the fund’s operating performance recorded a growth rate of 6.8%, thereby increasing the portfolio’s year-to-date performance to 26.9%.

Leading the portfolio’s growth in October for Pyn Elite Fund were the breakthroughs of stocks such as NVL, VHM, and TPB.

By the end of October, Pyn Elite Fund’s portfolio size reached 767.6 million Euro (approximately 890 million USD, equivalent to 20,000 billion VND). Among them, VHM continued to be the stock with the largest proportion in the portfolio at 19.7% (approximately 151.2 million Euro, equivalent to nearly 4,000 billion VND).

In Q3/2021, VHM recorded a profit growth of up to 88% compared to the same period last year thanks to strong and on-schedule sales, despite the impact of social distancing. In October, real estate stocks (excluding VHM) grew by 18% compared to the previous month due to expectations of an economic stimulus package, while VHM only increased by 9.2% compared to the previous month, slightly lower than the industry average.

Pyn Elite Fund assesses that despite its “huge” scale, VHM’s valuation is currently more attractive than other companies in the real estate sector, as it owns a land bank of up to 16,200 hectares and can deliver sustainable profit growth of 15-20% per year for at least the next 3-5 years, according to the fund’s estimates.

Standing second in Pyn Elite Fund’s investment portfolio is TPB with a weight of 12.1%, followed by CTG with a weight of 9.7%, a significant increase compared to 8.6% in the previous month.

It is estimated that by the end of October, Pyn Elite Fund held approximately 61.9 million CTG shares, an increase of about 8.5 million shares compared to the previous month. More than a year ago, CTG was Pyn Elite Fund’s largest investment, and the fund subsequently gradually reduced its weight. However, recently, after a prolonged correction, Pyn Elite Fund is actively increasing its holdings in CTG.

The top 10 largest stocks in Pyn Elite Fund’s portfolio saw only one change compared to the previous month, as SCS left the top and was replaced by CEO (2.3% weight).

Top 10 largest stocks in Pyn Elite Fund’s portfolio at the end of October

Regarding general market developments, Pyn Elite Fund stated that the VN-Index surpassed 1,400 points to reach a peak of 1,444 points at the end of October, making the VN-Index one of the best-performing stock indices globally with an increase of 7.6% compared to the previous month and 30.8% year-to-date.

Pyn Elite Fund assesses that market sentiment is currently strengthened by the reopening and accelerated vaccination rates, along with better-than-expected Q3 business results and expectations of an economic stimulus package.

According to Pyn Elite Fund, despite being at an all-time high, the VN-Index’s forward P/E for 2022 is only 13.6, while the profit growth outlook is projected to be very positive. Daily liquidity remains high, at about 1 billion Euro (~26,000 billion VND), with strong buying demand from domestic investors.