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[email protected]. Click here to follow us on LinkedIn. MEKONG CAPITAL - 1Q12 NEWSLETTER for the period ending 31 March 2012 Spotlight on Investee Companies Divestments SPOTLIGHT ON INVESTEE COMPANIES ACC - YTD net profit growth of Sector: Chemical Distribution 62% Asia Chemical Corporation (“ACC”) grew net profit by 62% in the first quarter. The company correctly anticipated product categories with increasing market demand, such as food & beverage ingredients, and was successful in boosting sales in those categories. Meanwhile, Asia Saigon Food Ingredients JSC (“AFI”), a joint venture between ACC, Vinamilk and Trung Nguyen Coffee which manufactures non-dairy creamer, achieved full capacity of its first production line during the quarter. AFI is starting to implement its next expansion phase. www.asia-chemical.com Golden Gate - YTD net profit growth of Sector: Restaurant Chains 55% Golden Gate’s net profit growth was 55% in 1Q12, driven by successfully opening new restaurant outlets. As of 31st March 2012, the company operates a total of 37 restaurant outlets, including 5 Ashima - the pioneer mushroom hotpot restaurant chain in Vietnam, 22 Kichi-Kichi - rotary express hotpot restaurant chain, 9 SumoBBQ - grill & hotpot restaurant chain and 1 Vuvuzela - a bar and steak house concept. To see a map of all of Golden Gate’s restaurant locations, please click here. www.ggg.com.vn An Giang Plant Protection - YTD net profit growth of Sector: Distribution of Agricultural Inputs, Rice Processing 54% An Giang continues its great momentum, with net profit growth of 54% in the first quarter. Increasing export demand for Vietnamese rice, as well as rising domestic rice prices, incentivized farmers to enhance productivity by investing more in premium crop protection chemicals and seeds. Although An Giang is already the clear market leader with 22% market share for distribution of crop protection chemicals in Vietnam, An Giang’s sales strategy was successful in generating growth by focusing on the premium segment of the market. www.agpps.com.vn VAS- YTD net profit growth of Sector: K-12 Education 18% Vietnam Australia International School (“VAS”) grew its net profit by 18% in 1Q12, mainly driven by management’s continuous efforts to implement best practices and operational improvements. The Company’s successful execution in revamping its campus network in 2011, by launching two mega-campuses while closing three smaller campuses, has resulted in better facilities for students, while at the same time achieving greater operational efficiencies at the mega campuses. To see a map of all of VAS’s school locations, please click here. www.vas.edu.vn MobileWorld Opened 19 Stores in 1Q12 Sector: Mobile Phone and Consumer Electronics Retail MobileWorld opened 17 new Thegioididong stores (mobile device retail) and 2 Dienmay stores (consumer electronics retail) in 1Q12, bringing the company’s total store network to 226 Thegioididong stores and 9 Dienmay stores by the end of the first quarter. Present in all 64 of Vietnam’s provinces, and with close to 20% market share in mobile phone retail, MobileWorld has expanded its lead in mobile phone retail, and is rapidly closing in on the incumbent market leader in the consumer electronics retail segment. To see a map of all of MobileWorld’s store locations, please click here. www.thegioididong.com PERFORMANCE OF LISTED INVESTEE COMPANIES CURRENTLY HELD BY MEKONG CAPITAL’S FUNDS* Company Name Trading Code Share Price (7 May 2012) (VND) YTD Share Price Performance 2012(T) P/E ratio 2012 Net Profit Target (VND Billion) 2012 Target Net Profit Growth Rate % Percent held by Mekong’s funds (7 May 2012) Intresco ITC 13,100 79% 25.8 34.8 n/a 20.00% FPT Corporation Phu Nhuan Jewelry Traphaco FPT 67,000 35% 6.9 2,100.0 24% 0.88% PNJ 41,500 3% 8.2 304.0 18% 6.90% TRA 72,000 99% 6.8 130.0 46% 25.00% Ngo Han NHW 10,700 -18% 4.4 55.7 30% 29.70% Note: * All of our listed investments are in companies that were unlisted at the time of our original investment and were subsequently listed on a stock exchange. The only exception is FPT Corporation, in which we received shares in exchange for swapping shares of FPT Corporation’s software outsourcing subsidiary, FPT Software (“F-Soft”), which was an unlisted company. DIVESTMENTS Recently having completed two exits in Mekong Enterprise Fund, Mekong Capital’s three funds have completed 10 full exits. Mekong Capital’s funds are currently holding 16 investee companies. Mekong Enterprise Fund completed the sale of its investment in Goldsun Sector: Manufacturing of kitchenware and Packaging In 1Q12, Mekong Enterprise Fund completed the sale of its investment in Goldsun Joint Stock Company (“Goldsun”), a manufacturer of household appliances and carton packaging. The Goldsun brand has become increasingly well-known in recent years as Goldsun expanded from its original focus on gas stoves to a wide range of household appliances. The Fund originally invested in Goldsun in December 2005. www.goldsun.vn Mekong Enterprise Fund completed the sale of its investment in Lac Viet Sector: IT Services In 1Q12, Mekong Enterprise Fund fully divested its shares in Lac Viet Computing Corporation (“Lac Viet”), an IT services provider in Vietnam. Since the Fund made its investment in July 2003, Lac Viet has developed from a company mainly focusing in system integration to a leading software provider for small and medium sized companies with client portfolio of over 5000 customers in Vietnam. Lac Viet e-dictionary, accounts for 95% market share, was voted as most wanted application on mobile phones in the Vietnam Mobile Awards 2010. In 2011, Lac Viet signed a cooperation deal with IBM Vietnam to be one of the first Vietnamese IT companies to provide cloud-computing services for local businesses. www.lacviet.com.vn 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:
[email protected] www.mekongcapital.com