VEIL Monthly Report – February 2026

Performance

Fund Commentary

VEIL’s NAV rose 1.2% MoM and 5.5% YTD. Gains were concentrated in cyclical sectors, particularly conglomerates, logistics and energy-related stocks, while financials and tech consolidated following strong earlier performance. Within the portfolio, conglomerates were the largest positive contributor, driven primarily by Vingroup (VIC), which rose 21.9% during the month. Logistics exposure added meaningfully, with port developer GMD advancing 22.6%, reflecting optimism around Vietnam’s trade outlook and one-off gains from a rubber divestment of approximately $75mn.

The energy sector performed well, with oil services companies PVD and PVS gaining 24.0% and 3.9%, respectively, supported by improving offshore activity expectations. Brokerage stocks including TCX and VPX contributed positively, benefiting from strong market liquidity and continued progress in capital market reforms. These gains were partly offset by weakness in banks, which represented the largest drag, reflecting profit-taking after strong earlier gains, alongside a correction in FPT amid investor concerns over rising AI competition.

We reduced exposure to banks and residential real estate in February, while increasing allocations to consumer staples, fertilisers, and energy to rebalance toward sectors where earnings visibility and cyclical momentum are strengthening. Post period-end, escalating US–Iran tensions have introduced additional uncertainty into global markets and increased volatility in energy prices. While the direct economic impact on Vietnam remains limited at this stage, we are closely monitoring developments. VEIL maintained a cash position of approximately 5.9% at the end of February, which we increased in the first week of March to manage volatility while preserving flexibility should opportunities emerge. The portfolio remains positioned to capture Vietnam’s medium-term growth opportunities while maintaining discipline as global geopolitical risks evolve.

Stock in Focus: Phu Nhuan Jewelry (PNJ)

Founded in 1988, PNJ is Vietnam’s leading gold jewellery producer and retailer, with a market share of c.40%. The company has been a key beneficiary of tighter tax enforcement on household jewellery shops following the recent e-invoice rollout, enabling PNJ to accelerate share gains from the fragmented ‘mom-and-pop’ segment. This drove record-high 4Q25 earnings, up 67% YoY, and FY24 earnings growth of 34% YoY.
 
Supply constraints that weighed on 1Q25 have now been resolved. Since November 2025, PNJ has shifted its gold sourcing strategy from wholesalers to direct purchases from retail customers across its store network, enabling the company to secure sufficient raw materials for the 1Q26 peak season. With demand strengthening alongside gold price momentum, we expect 1Q26 earnings to reach another record high. PNJ recently appointed Mr Phan Quoc Cong as CEO, a well-known entrepreneur with a strong track record of scaling local brands to compete with global players in Vietnam. Under this new leadership, we believe PNJ is entering a new growth phase with potential expansion into additional business lines. We forecast 2026F revenue growth of 16% and NPAT growth of 39% YoY. The stock currently trades at 10.1x 2026F EPS, a 38% discount to its five-year median valuation, which we view as highly attractive given its earnings momentum and continued market share gains.