Masan Consumer's IPO roadmap sees new developments.

On October 2nd, Masan Consumer Corporation (Masan Consumer, stock code: MCH) announced a resolution of its Board of Directors approving the transfer of MCH shares from the UPCoM exchange to the Ho Chi Minh City Stock Exchange (HOSE).

Earlier, at an investor meeting held in early May, Danny Le, CEO of Masan Group, spoke about the company's fundraising plan this year. He stated that with Masan Consumer's average annual growth rate of 15% over the past 6-7 years, "it's time to consider a potential IPO."

Continuous double-digit growth for 7 years

Masan Consumer has a stable business history with high growth rates, significantly outperforming other FMCG and packaged food companies in the region.

Specifically, according to a report by HSBC, from 2017 to 2023, Masan Consumer grew at a rate 2.2 times faster than the overall market. The HSBC report also highlighted Masan Consumer's plan to list MCH shares on the HOSE (Ho Chi Minh Stock Exchange). The financial group believes that listing on HOSE could improve the liquidity of MCH shares, reflecting the company's outstanding performance over the years.

The shareholder approval of the plan to list MCH on the HOSE exchange shows that this strategic move by the company is on track. Furthermore, the successful IPO of Masan Consumer will help increase the valuation of Masan Group stocks such as MCH and MSN, and this roadmap is becoming increasingly clear with positive information from the company and the market.

Consumers shop for Masan Consumer products at WinMart supermarket.

Serving 98% of Vietnamese households.

Starting with spices as its core business, Masan Consumer has now expanded into eight major consumer goods sectors in Vietnam and owns five brands that generate annual revenues of $150-250 million USD. These are consumer brands that have become familiar to millions of Vietnamese people, such as CHIN-SU, Nam Ngư, Omachi, Kokomi, and Wake-up. It is known that these five "Big Brands" account for approximately 80% of Masan Consumer's revenue in the Vietnamese market.

According to Kantar, over 98% of Vietnamese households own at least one Masan Consumer product. Among them, CHIN-SU and Nam Ngư are the most popular brands in urban areas; while in rural areas, the top four brands are Nam Ngư, CHIN-SU, KOKOMI, and Tam Thái Tử (according to a report by HSC Securities). In both urban and rural areas, Masan Consumer has a loyal customer base, willing to try new products, contributing to increased sales across various product categories.

According to the company's latest report, Masan Consumer continues its record growth from 2023 with positive business results in the second quarter of 2024. Masan Consumer's revenue recorded a 14% growth and continued to maintain a high gross profit margin of 46.3%. In the second quarter of 2024, the Convenience Food, Beverage, and Coffee sectors led the growth race, recording increases of 20.7%, 17.6%, and 16% respectively compared to the same period last year. In addition, the company's Go Global strategy also achieved positive results with export revenue continuing its growth trajectory, reaching a 17% increase compared to the same period last year.

Boost from market upgrade

On September 18th, the Ministry of Finance officially approved Circular 68/2024/TT-BTC. The new circular contains notable provisions regarding the possibility of foreign institutional investors purchasing shares without requiring sufficient funds (non-pre-funding) and a roadmap for disclosing information in English, effective from November 2nd, 2024.

This is a step closer for the Vietnamese stock market to meet the FTSE Russell's requirements for an upgrade to emerging market status.

SSI Research forecasts that Vietnam will be upgraded in the September 2025 review. With the upgrade to emerging market status, preliminary estimates suggest that capital inflows into the Vietnamese market from ETFs could reach US$1.7 billion, not including inflows from actively managed funds (FTSE Russell estimates total assets from actively managed funds to be five times greater than those from ETFs). This would also be a positive catalyst for companies planning IPOs in 2025, such as Masan Consumer.

Foreign investors seeking to learn about the fast-moving consumer goods (FMCG) industry, invest long-term in businesses with a stable business history, high growth rates, and substantial dividend payouts, will find Masan Consumer's MCH stock to be a potential option.

With its outstanding growth rate, Masan Consumer has attracted the attention of many large domestic and international investors. Recently, a resolution of Masan Consumer's Board of Directors revealed a number of large investment funds holding shares in the company. These include Albizia Asean Tenggara Fund, which owns 3,891,258 MCH shares; Vietcap Securities Joint Stock Company, which owns 2,700,800 MCH shares; and the Bill & Melinda Gates Foundation Trust, which owns 1,041,100 MCH shares.

In 2024, Masan Consumer aims to continue achieving double-digit revenue and profit growth. Net revenue is projected to reach between VND 32,500 billion and VND 36,000 billion. The company's plan focuses on owning six billion-dollar brands and achieving 10-20% of revenue from the global market, upgrading products and expanding the product range for each brand, increasing market reach from 100 million consumers in Vietnam to 8 billion globally.

Source: https://baodautu.vn/lo-trinh-ipo-cua-masan-consumer-co-dien-bien-moi-d226408.html