MCH shares of Masan Consumer Corporation (Masan Consumer) continued their positive trend, continuously reaching new peaks. Specifically, by the end of the trading session on June 28, Masan Consumer's share price reached VND222,000/share, up 154% compared to the beginning of the year.
With 717.5 million shares in circulation, the market capitalization of this code reaches 159,285 billion VND, approximately 6.4 billion USD. The above figure surpasses the parent company Masan Group (MSN), as well as other members on the group's stock exchange such as Masan High-Tech Materials (MHT), Netco (NET), Masan MEATLife (MML) or Vinacafé Bien Hoa (VCF). If calculated in total, MCH's capitalization is currently higher than MSN, MHT, NET, MML, VCF combined.
In the near future, when MCH is listed on the Ho Chi Minh City Stock Exchange (HOSE), Masan Consumer will be in the top 10 companies with the highest capitalization value on the stock exchange and has the potential to be included in important indexes of the Vn-Index, contributing to bringing MCH into the holding portfolio of large funds on the stock market. For example, with a similar capitalization, VPB shares of Vietnam Prosperity Joint Stock Commercial Bank currently account for 6% of the portfolio weight of the DCVFMVN30 fund, a fund simulating the VN30 index, and 8.5% in the VEIL fund, one of the largest foreign funds investing in the Vietnamese stock market with a net asset value of more than 1.8 billion USD. Both funds belong to Dragon Capital Fund Management Company. With the above potential, Masan Consumer's stock price still has a lot of room to grow when MCH is listed on the HOSE and is bought by many funds.
Masan Consumer's financial report shows that its business results have been growing continuously year by year. In 2023, the company recorded record revenue and EBITDA figures, reaching VND 29,066 billion and VND 7,431 billion, respectively. Shareholders approved a cash dividend rate of 100% (VND 10,000/share). Masan Consumer's stock price has also been constantly accelerating on the stock market, meeting investors' expectations.
By the first quarter of 2024, the company achieved VND 6,727 billion in revenue and VND 1,705 billion in net profit, up 7.4% and 16.3% year-on-year, respectively. Gross profit margin continued to increase to 45.9% - just lower than the fourth quarter of 2024 and 4% higher than the same period last year.
According to SSI Securities Company, Masan Consumer's stock price is attractive because the company has recorded outstanding growth compared to other companies in the same industry in recent years (revenue CAGR of 10% and after-tax profit CAGR of 11% in the period 2019-2023). The upward trend in Masan Consumer's stock price is expected to continue in 2024-2025 thanks to recovering consumption, research activities to launch new products for the domestic market and boosted exports. Masan Consumer's competitiveness thanks to being in the ecosystem with WinCommerce will increase the company's value. Gross profit margin is maintained at over 45% thanks to product premiumization activities.
According to information from the recent General Meeting of Shareholders, Masan Consumer's strategic goal is to own 6 billion USD Big Brands, premiumize products and expand product range for each brand, expanding the accessible market from 100 million consumers in Vietnam to 8 billion people globally.
The growth prospects of consumer goods businesses in 2024 are supported by expectations of economic recovery and consumer demand, along with the Government's approval of a policy to reduce the value-added tax (VAT) rate by 2%, applicable to groups of goods and services currently subject to a tax rate of 10% (to 8%).
Moreover, the growth momentum of Masan Consumer's stock price also comes from a series of new "stories" that the company announced it would strongly implement from 2023 to present: premiumization strategy, Go Global and the plan to list on HOSE.
Premiumization strategy
At the recent General Meeting of Shareholders, Mr. Truong Cong Thang, General Director of Masan Consumer, said that the company owns 5 Big Brands with revenue of 150-250 million USD including Kokomi, Omachi, Chinsu, Nam Ngu and Wakeup 24/7, contributing about 80% of total revenue, in the past 7 years in the Vietnamese market.
Masan Consumer's products meet many consumer needs right at home, from the kitchen with brands such as Chin-su, Nam Ngu, Omachi,... to the bathroom with Chante, Net... And aim for the Out-of-Home goal with self-boiling hot pot products, self-cooking rice...
Currently, Masan Consumer is focusing on building 6 Big Brands worth billions of USD with the goal of reaching the top revenue in Southeast Asia and Asia. These promise to be the driving forces to push Masan Consumer's stock price to continue conquering new records.
The formula for building billion-dollar Big Brands is based on premiumizing consumer products through breakthrough initiatives; expanding the scale of each Big Brand; WIN membership program and Point of Life ecosystem.
“If we want to be the top revenue earner in Southeast Asia, we cannot do business in Vietnam, wait for orders… but must bring the most unique products of Vietnam to new lands outside,” Mr. Truong Cong Thang emphasized.
With that goal, Mr. Thang said that Masan Consumer must focus on building 6 Big Brands, spending 80% of the marketing budget to create new needs and add value to expand the scale of the Big Brands.
In addition, the process of digitizing all points of sale, e-commerce and WiN members also requires the support of many parties within the Group to improve the quality of customer service. At the same time, it is necessary to build a young, dynamic team of employees for the future.
Go Global Strategy
At the Masan Group General Meeting of Shareholders held on the morning of April 25, Chairman of the Board of Directors, Mr. Nguyen Dang Quang shared: "Masan Consumer is a "family heirloom diamond", a source of pride in the mission of serving consumers".
To date, 98% of households in Vietnam have at least one Masan Consumer product as the company has built a product line system starting from the kitchen, refrigerator to the living room, bathroom. In a market of about 8 billion USD, Masan Consumer has basically served all the essential needs at home.
However, with the size of Vietnam's FMCG market reaching 32 billion USD, Masan Consumer's market share has not yet exceeded 5%. Therefore, Masan Group's leaders want to target a larger, more upscale market than out-of-home, starting with the Omachi brand of self-boiling hot pot and self-cooking rice.
2023 marks the outstanding growth of Masan Consumer when applying the strategy "Go Global - bringing Vietnamese brands to the world " towards two goals: One is by 2027, contributing 15% of sales from international business activities. The other is expanding the Chin-su brand, Vietnam's leading spice, to become an international brand and bring Vietnamese spices to the world. With the current growth rate of 4%, Masan Consumer sets an additional growth rate of 2-3% per year, equivalent to an increase of nearly 4 times by 2027.
With the “Go Global” strategy, Masan Consumer has expanded its market size by 131 times, reaching 3,100 billion USD. By 2024, the company plans to increase its customer base to 8 billion consumers. The continuous increase in Masan Consumer’s stock price with high liquidity is a testament to the market’s strong confidence in the company’s achievements over the past time.
Plan to list shares on HOSE
With a top position in the consumer goods industry, impressive business growth in recent years, and Masan Consumer's stock price continuously hitting new peaks, MCH has no difficulty meeting the listing conditions (currently trading on UPCoM).
The 2024 Annual General Meeting of Shareholders of Masan Consumer has approved an important content, which is the policy of listing all MCH shares currently in circulation on the Ho Chi Minh City Stock Exchange (HOSE). This is truly a breakthrough decision that opens up a potential roadmap to help Masan Consumer's stock price maximize the outstanding capacity of the MCH code.
Currently, some other members of Masan Group (MSN) have listed shares, including Vinacafé Bien Hoa (VCF) or Netco (NET), while their capital scale is very small when compared to Masan Consumer.
When it was first listed and traded on the UPCoM market in January 2017, the reference price of Masan Consumer shares was VND90,000/share (unadjusted price). In the last year, MCH recorded an average trading volume of about 63,000 shares per session. However, this number has increased 3 times in the last month (about 260,000 shares per session).
Updated information from Bloomberg News shows that Masan Consumer is currently listed on UpCom but the liquidity of this market is very low. Therefore, HSBC's analysis report believes that switching to listing on HOSE can help Masan Consumer's stock price grow steadily, improve liquidity, in line with the outstanding capacity that the company has achieved over the years.
This year, MCH is expected to achieve revenue of VND32,500 billion to VND36,000 billion, with growth mainly contributed by the convenience food, beverage and home and personal care industries. With a positive business outlook, Masan Consumer's stock price is expected to continue to maintain its current "performance".
Source: https://www.masangroup.com/vi/news/invest-in-vietnam/3-growth-motivations-of-Masan-Consumer-stock-price.html
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