DRAGON’S TOP HOLDINGS

VIETNAM: POWERING THROUGH COVID-19 / 1

HOA PHAT GROUP (HPG)

FULLY-INTEGRATED STEEL MANUFACTURER SUPERIOR EFFICIENCY

Construction Materials 40
Industry EBITDA Margin 2020
%
• Vietnam’s only integrated steel 35
producer, with dominant market share
Severstal PAO
in construction steel (33%)
30
• All stars aligned for HPG: Company
Cycle – Sector Cycle – Macro Cycle 25
Why We Like HPG
• #1 EBITDA company – surpassing
Vinamilk, the famous cash-cow 20

• Competitive cost structure results in Tata Steel

outstanding efficiency vs. regional 15
Tenaris
Baoshan Iron
peers SA POSCO
and Steel
10
Market Cap $6.0bn Maanshan
ArcelorMittal Iron and
2021F EPS Gro 35.1% Acerinox Steel
Sansteel
5
Minguang Fujia
2021F PER 8.2x Nippon
Steel
2021F Net DER 0.2x 0

2021F PBR 1.9x

Sales CAGR 2015-2020
-5
2021F ROE 26.7% -15 -10 -5 0 5 10 15 20 25 30 % 35

VIETNAM: POWERING THROUGH COVID-19 2

DAT XANH GROUP (DXG)

NO-1 REALTOR, MOVING INTO DEVELOPMENT BILLION-DOLLAR LANDBANK IN EAST HCMC

Industry Real Estate

Củ Chi
• Vietnam’s No-1 real-estate broker, now Opal CitiView
1,500
Opal units
Citiview
successfully transitioning into property 1,500 units

development Bình Dương

Opal SkyView
Opal Skyline
1,500 units
• Prime beneficiary of HCMC’s eastward Hốc Môn
1,500 units
Gem Long Thanh
shift – where DXG has a huge 4,000 units

Why We Like landbank with current $700m rNAV Opal Premium

Opal Premium
4,500 units
4,000 units
• Booming 2021-22 earnings with cheap Thủ Đức City
Opal City
valuation of 5.3x 2021 PER 2,500 units
Opal City
2,500 units
• Potential to triple market cap in 2-3 Gem Riverside
Gem Riverside
years 3,100 units
3,100 units
Old OLB
CBDCBD NEW CBD
Market Cap $381m

2019-22F CAGR 22%

2021F PER 5.3x

2021F PBR 1.0x Nhà Bè

Bình Chánh
2021F ROE 22.7%

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ASIA COMMERCIAL BANK (ACB)

VIETNAM’S TOP RETAIL BANK BEST OF CLASS ASSET QUALITY

200 2.0
Industry Banking
% LLCR (%)

• Top retail bank, with retail lending 180 NPL Ratio (x) 175.0 1.9 1.8
accounting for 61% of loan book
160 151.9 1.6
• Best-of-class asset quality with NPLs
consistently lower than 1% and LLCR
140 132.7 1.4
of ca 120%
Why We Like • Solid earnings quality driven by strong 120
117.5
1.2
credit growth; diversified sources of
income 100 1.0

• Recent bancassurance deal, with 0.8 84.2

$370m upfront payment, will lower 80 0.7 0.7 0.8
cost of funding and boost fee income
60 0.5 0.6
Market Cap $2.6bn
2021F EPS Gro 22.6% 40 0.4

2021F PER 6.8x

20 0.2
2021F PBR 1.5x
0 0.0
2021F ROE 24.3% ACB 2017 ACB 2018 ACB 2019 ACB 9M20 Peers 9M20

VIETNAM: POWERING THROUGH COVID-19 4

MOBILE WORLD GROUP (MWG)

VIETNAM’S NO-1 PHYSICAL AND ONLINE RETAILER GROCERY MODERNIZATION OFFERS YEARS OF GROWTH
Mobile Phone Consumer Elec’s
Industry Retail – Consumer Elec’s and Grocery
Market Size: $4.5bn Market Size: $5bn
• The best play on Vietnam’s rising Traditional &
middle-income-class spending with Online, 20% Traditional
& Online,
total addressable market of $90bn MWG, 38% MWG,
45% 42%
• Consistently high profit growth even in
COVID time thanks to exceptional
Why We Like
management & unrivaled scale Other chains,
35% Other chains,
• Store-based revenue triple that of 2nd 20%
player, online revenue larger than the Grocery& FMCG
three largest e-platforms combined
Market Size: $80bn
MWG, 1.4%
Other chains,
Market Cap $2.4bn 11%

Traditional &
2021F EPS Gro 20.1% Online, 88%

2021F PER 11.8x

2021F Net DER 0.2x

2021F PBR 2.9x

2021F ROE 27.5%

VIETNAM: POWERING THROUGH COVID-19 5

VINCOM RETAIL (VRE)

VIETNAM’S BIGGEST MALL OPERATOR VERY UNDER-PENETRATED MODERN RETAIL NLA

1.9
Industry Real Estate, Retail Leasing Net Lease Area 1.8
1.8 m2 per capita
• Dominant mall operator with 79 malls / 1.7
2
1.6m m of GFA (60% market share) 1.6
offering mid- to high-end shopping 1.5
experiences 1.4
1.4
• Under-penetrated market, where 1.3
Why We Like per-capita modern retail space is 1.2
barely 10% of BKK’s 1.1
1.1
• VRE is best positioned to capture 1.0
rising income and booming middle- 0.9
class consumption 0.8

Market Cap $3.1bn 0.7

0.6
2021F EPS Gro 27.1% 0.5 0.5
0.5
2021F PER 24.6x 0.4
0.3
2021F Net DER 0.1x 0.2
0.2
0.1
2021F PBR 2.3x 0.1

2021F ROE 9.7% 0.0

HCMC Hanoi Jakarta Manila Singapore Bangkok KL

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