Decoding the special attraction of MCH stock when changing floors

(Dan Tri) - Moving from UPCoM to HOSE not only brings easier access to investors for Masan Consumer but also creates quality products for the stock market, especially in the leading stock group.

MCH shares of Masan Consumer Corporation (Masan Consumer) have been traded on the UPCoM since 2017. In 2024, a long-term roadmap was revealed when the company's board of directors and Masan Group (MSN) repeatedly announced the steps to realize the plan to move this code to HOSE. On December 4, MCH held a roadshow, officially announcing that it would be listed on the largest stock exchange in Vietnam in December.

The roadshow "Listing on HOSE and the growth story" held on the afternoon of December 4 was emphasized by the leadership of MCH and MSN as the first time a new product of Masan was launched, but "still has all the familiar features of the group's previous products", which is MCH stock.

The reaction of investors, who packed the Sheraton Hotel in Ho Chi Minh City that afternoon, showed the market's high expectations for Masan Group's "family heirloom diamond".

MCH's roadshow was the focus of stock investors last week (Photo: MSN).

Open the door to attract investment capital for MCH

The past three decades have witnessed a dramatic change in the fast-moving consumer goods market in Vietnam, from a scarcity of branded products to explosive growth in breadth, before shifting to focusing on depth of experience and value upgrades.

MCH Deputy General Director Pham Dinh Toai, during the roadshow on December 4, concluded: "Previously, branded products were brought to Vietnam by foreigners. Until MCH was born, Vietnamese consumers became the center of all research and new products.

We create new products not only to optimize functionality, but more importantly to meet the psychology and satisfy the spirit of Vietnamese people."

Mr. Toai also emphasized: "MCH has been a successful phenomenon in Vietnam and Asia over the past three decades with the ability to create and master strong brands, possessing a widespread distribution system based on a deep understanding of consumers."

MCH Deputy General Director Pham Dinh Toai at the roadshow on December 4 (Photo: MSN).

Currently, Masan Consumer is a rare Vietnamese FMCG company that has left a strong and lasting mark on the lives of Vietnamese people. The company's products are present in 98% of Vietnamese families, dominating the kitchen, living room, bathroom, bedroom and even out-of-home products (used outside the home).

In the next 5 years, MCH does not hide its ambition to invest heavily in the system to achieve the goal of bringing all 16 owned brands to sales of 100 million USD or more, modernizing the distribution chain with the "Retail Supreme" model and bringing technology deeper into each stage of its comprehensive research - production - distribution process.

However, being listed on UPCoM for a long time makes MCH's access to investment capital much more limited than its potential. In the structure of the Vietnamese stock market, HOSE is the priority destination for long-term capital flows, especially from foreign investors.

This exchange is maintained by the most stringent framework of standards in the market: from information transparency, auditing standards, transaction control to risk management. It is these high requirements that only businesses with solid business results, sustainable operations, and meeting many international standards can survive.

For a company with a revenue of up to 1.2 billion USD like MCH, moving from UPCoM to HOSE brings real value. Proactively choosing HOSE is not only a strategic move but also demonstrates the proven capacity of the company, when satisfying important criteria on governance, standardizing reports and readiness to participate in the leading competitive playground of the Vietnamese capital market.

At the same time, listing on HOSE also opens the door to international capital flows. Foreign funds - from active to large-scale ETFs - often only invest in businesses that meet many conditions: large enough capitalization, stable growth, sustainable profit margins, strong market share and recurring revenue.

Therefore, for MCH, changing the floor is not simply a change of listing address; it is a step to upgrade the position and operating standards of the enterprise on the international capital map.

According to Mr. Hoang Nam, Director of Research and Analysis of Vietcap Securities, when listed, MCH brings a great opportunity to invest in an industry that is the backbone of the Vietnamese economy .

This code, in addition to liquidity criteria, has met most of the standards to be included in major index baskets such as VN30, VN100, FTSE Vietnam 30 or MVIS Vietnam Index - baskets with high requirements on capitalization, liquidity and business stability.

More options for the capital market that is "thirsty" for quality stocks

The listing of MCH on HOSE took place at a time when the Vietnamese stock market entered a period of strong movement. FTSE Russell officially included Vietnam in the group of “secondary emerging markets”, along with the recovery trend of IPO activities, has created a new level of expectation for the entire market.

In the context that the market needs more large-scale enterprises with the ability to disclose transparently, MCH's decision to change floors is not only an internal move but also has additional meaning for the structure of HOSE.

MCH's presence on HOSE is expected to add weight to the consumer business group - which is considered a segment with a stable foundation and sustainable demand.

The familiarity of brands owned by MCH gives the company a significant advantage in the process of listing on HOSE (Photo: MSN).

In business fields, the consumer staples industry always holds a special position when it is considered a highly defensive group: less susceptible to economic and financial fluctuations. Thanks to this stable characteristic, stocks of businesses in the industry are often favored by investors, sought after and accepted at a higher valuation than the general level.

From the perspective of a long-term investor, the leader of Masan Group recently compared MCH to a "diamond investment", with 5 reasons:

Firstly, in terms of business, MCH has demonstrated high growth capacity in the past. However, with current plans, this growth is assessed as "only in the initial stage as Vietnamese people are rapidly shifting from saving to spending, with the desire for a better living experience".

Second, in terms of leadership, MCH shows that the company is holding the majority of profits in its target industries, with a healthy balance sheet. Mr. Huynh Viet Thang - Chief Financial Officer of MCH - said that the company is maintaining an average investment rate in fixed assets of 25%.

Third, in terms of distribution system, MCH is part of the Masan Group ecosystem and inherits a network of nearly 500,000 points of sale nationwide.

Fourth, in terms of products, MCH has 5 brands with revenue of 100 million USD or more, and is on the journey to bring all 16 important brands of the enterprise to this revenue milestone.

Masan Consumer currently has 5 brands with revenue of 100 million USD or more (Photo: MSN).

Fifth, in terms of stocks, MCH has always provided high dividends. For many long-term investors, the dividend payments in 2023-2024 alone will almost recover the investment capital, not to mention the benefits from the increase in stock price.

In fact, not only has it maintained its long-term profit growth momentum, Masan Consumer has proven to be one of the most generous dividend payers, with a total announced amount of $1.5 billion in cash.

During the 2018-2024 period, MCH paid 80% of the par value dividends to shareholders. In 2023 and 2024 alone, MCH's total cash dividend payment was up to VND36,300/share.

Masan Consumer (code: MCH) is a member company of Masan Group (code: MSN) that owns a diverse portfolio of FMCG products in the fields of spices, convenience foods, beverages, personal and family care, with familiar brands such as CHIN-SU, Nam Ngu, Omachi, Kokomi, and Wake-up 247.

With the mission of serving consumers, Masan Consumer has constantly innovated to bring quality products, meeting the essential needs of millions of families. Masan Consumer products are present in more than 98% of Vietnamese households and introduce the quintessence of Vietnamese cuisine to more than 26 countries around the world .

Source: https://dantri.com.vn/kinh-doanh/giai-ma-suc-hut-dac-biet-cua-co-phieu-mch-khi-chuyen-san-20251205202348657.htm