Thien Long products have been associated with many generations of students - Photo: TLG
Kokuyo Group (Japan) recently revealed that it will spend 27.6 billion yen (equivalent to nearly 4,700 billion VND) to buy back more than 65% of shares of Thien Long Group (TLG).
Thien Long, don't let it "disappear" like Da Lan toothpaste.
Commenting with Tuoi Tre Online , communications expert Nguyen Dinh Thanh - co-founder of Elite PR School - said "national brands" are not only organizations that create jobs but are also part of the nation's memory and national pride.
He cited the story of China being proud of Huawei, Alibaba, Douyin (TikTok) or Koreans being proud of KakaoTalk, Naver...
Before Thien Long, there were dozens of famous Vietnamese brands that were sold. However, there were also some brands that "disappeared" after being bought, such as Da Lan toothpaste.
On the other hand, many businesses are still trying to gain market share such as Khoa Huy Hoang, Tan Hiep Phat, Vinamilk , Vietnamese coffee chains or many traditional fish sauce brands... under pressure from foreign competitors.
"Thien Long is a good and long-standing brand. If this M&A deal helps Thien Long develop better in both the Vietnamese and international markets, it is a good sign," said Mr. Thanh.
However, he also noted that if businesses lose their dominant position, they will no longer be able to take the initiative in orienting development strategies, controlling growth rates and distributing business benefits.
Thien Long is currently listed on the HoSE with the code TLG, with a market price of VND67,400/share. Mr. Huynh Anh Huy, CFA, Director of Industry Analysis at Kafi Securities, said that TLG's business situation and financial health are showing a positive recovery after the decline caused by COVID-19.
Revenue for the first 10 months increased by 8.6% compared to the same period last year. Of which, the export segment increased by 9.1%, higher than the domestic rate of 8.5%. Mr. Huy assessed that this shows that export is gradually becoming a new growth driver for TLG.
In terms of business performance, TLG maintained an impressive gross profit margin of 45% thanks to optimizing production costs. ROE (return on equity) also improved significantly, from 18% in 2023 to nearly 21% today.
What pressure is Thien Long under?
Overall, Kafi experts assess that the domestic stationery market is entering a period of slow growth. TLG has taken the leading market share, so there is not much room for domestic expansion. Therefore, expanding to the international market has become a strategic step to maintain long-term growth.
"This deal is quite important for Kokuyo in its journey to become the leading stationery brand in Asia by 2030," said Mr. Huy. As for TLG, M&A is considered the fastest way to expand internationally, instead of building its own distribution system, which takes a lot of time.
In a recent announcement, Thien Long's representative also admitted that they sold shares to a foreign enterprise with "the trust and expectation that the participation of a reputable partner from Japan will help TLG expand cooperation in research, design, and improve domestic and foreign products, in line with the global strategic orientation of 'Glocalization'".
Although TLG affirmed that the transfer of shares has not immediately affected its business operations, the reality shows that when becoming a subsidiary, they will have to comply with the parent corporation's strategy.
According to Mr. Huy, this could reduce the level of flexibility in business decisions and product development to suit rapidly changing tastes in Vietnam and ASEAN.
In addition, the challenge of integrating culture and retaining key management teams is also a notable factor when transforming from a family business model to a multinational corporation.
Ms. Ha Vo Bich Van, financial advisor at Hub Dong Hanh, a member of FIDT Investment Consulting and Asset Management JSC, commented that the Thien Long story is not a simple "takeover" activity.
For many Vietnamese enterprises, despite their strong brands in the domestic market, expanding to the region and the world is not without challenges, requiring enterprises to possess an internationally standardized supply chain, multinational management experience, a global distribution system and the ability to innovate products on a large scale. These factors are often only available when enterprises cooperate with foreign corporations that already have integrated global technology, management and resources.
"Vietnamese brands are not weak. But to enter the international market, many businesses are lacking the 'ladders' that only multinational corporations can provide," Ms. Van emphasized.
Not to mention, recently TLG products have also faced no small competitive pressure with cheap Chinese products.
Note on TLG stock
According to estimates, with the price Kokuyo proposed in this deal, the average price of each TLG share transferred is about 82,000 VND, 21% higher than the market price on December 5.
However, expert Kafi noted that in the long term, investors need to closely monitor the stability of operations and the ability to integrate businesses after M&A.
The reality from large deals like SAB or BMP shows that businesses often go through a turbulent restructuring period. However, if the core foundation is solid, business operations and stock value can still grow strongly in the following cycles.
Source: https://tuoitre.vn/thien-long-ban-minh-noi-tiec-nuoi-thuong-hieu-viet-hay-co-hoi-vuon-ra-the-gioi-20251207161151624.htm
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