Prospects for MSN stock

(Dan Tri Newspaper) - Amidst the VN-Index fluctuating around the 1,300-point mark, consumer and retail stocks like Masan Group (MSN) have emerged as attractive options thanks to stable business results, a strong integrated model, and a well-structured development strategy.

In its latest update, Bao Viet Securities (BVSC) has offered an optimistic outlook on Masan Group's business prospects in 2025. Using the sum-of-the-parts (SoTP) valuation method, BVSC values ​​Masan Group's MSN shares at VND 89,200 per share.

Amidst the volatile trading sessions and cautious investor sentiment in the Vietnamese stock market, consumer and retail stocks continue to stand out as bright spots thanks to stable business results and long-term growth potential. Among them, MSN is a noteworthy name, not only for its positive figures in the first quarter of 2025, but also for its clear development strategy, flexible adaptability, and attractive valuation at present.

MCH - The "Profit Champion" of the Masan ecosystem

MCH – Masan Group's flagship consumer goods subsidiary – has recorded stable business results despite numerous market challenges.

In the first quarter, MCH achieved revenue of VND 7,489 billion, a 14% increase compared to the same period last year. Pre-tax profit decreased slightly due to a decline in financial income, but core operations still showed sustainable financial health with a gross profit margin maintained at 46.7% - among the highest in the FMCG industry in Vietnam.

In 2025, MCH plans to further advance its premiumization strategy in the convenience food industry with the launch of Omachi's new product line called "Asian Restaurants" (Asian Street Food). This initiative targets the affordable $1 meal market, applying advanced technology already used in products such as self-heating hot pot and self-cooking rice, offering convenient, high-quality meals at reasonable costs and targeting a vast market potential.

"Asian Restaurants" is a flagship product in MCH's premiumization strategy for the convenience food sector.

Another strategic highlight announced at MCH's Annual General Meeting was the Fast and Efficient Product Launch Model – APLM – which allows the company to introduce products at WinMart chains before nationwide rollout. The process begins with rigorous testing at MCH's Consumer Innovation Center (CIC), followed by product launch at WinCommerce stores, where direct feedback helps optimize the product.

Several prominent brands such as Wake-Up 247, Bupnon Tea365, and Chanté are clear examples of the effectiveness of this model, helping to shorten launch time and increase the probability of commercial success. MCH is also accelerating its brand internationalization strategy, with revenue from overseas markets increasing by 22% in 2024 and expected to continue to be a medium-term growth driver.

The transfer of listing to the HoSE exchange, expected to take place at the end of this year depending on market conditions, is also expected to bring a major boost in liquidity and attract interest from domestic and international institutional investors.

MCH's APLM model allows the company to introduce its products at WinMart chains before expanding nationwide.

MSN - A strategic shift and expectations of a strong recovery.

If MCH is the "profit-generating machine" within the Masan ecosystem, then MSN is the launching pad for the entire value chain.

In the first quarter, Masan Group recorded consolidated revenue of nearly VND 18,900 billion, a slight increase compared to the same period last year. Most notably, net profit attributable to parent company shareholders increased nearly fourfold, reaching VND 394 billion. This recovery stemmed from all business pillars: Masan Consumer (MCH), WinCommerce (WCM), Masan MEATLife (MML), and Phuc Long Heritage (PLH), with WCM – the flagship retail system – achieving positive profits after restructuring.

A significant highlight is Masan's strong push towards a modern retail model through the rapid expansion of its WinMart and WinMart+ systems, aiming to open over 1,900 new stores in rural areas by 2025. Simultaneously, the company is pursuing a "Go Digital" strategy – comprehensive digitalization from operations and supply chain to customer interaction – to build a smart consumer ecosystem, optimize costs, and enhance the shopping experience. The synergy between strong brands and the retail platform allows MCH, MML, and other member companies to greatly benefit from the coverage and strength of their distribution channels.

Masan's "Go Digital" strategy is expected to help it build a smart consumer ecosystem and optimize costs.

Financially, BVSC forecasts Masan will achieve full-year revenue of approximately VND 87,000 billion in 2025 and after-tax profit of VND 2,802 billion, an increase of over 40% compared to 2024. Based on the total asset valuation (SoTP) method, the fair value of MSN is calculated at VND 89,200 per share - 43.9% higher than the current market price of VND 62,000. This indicates significant potential for further price growth if key strategies continue to be effectively implemented, especially in the context of a strong recovery in domestic consumer confidence.

Besides possessing a solid business foundation, MSN is also actively restructuring to optimize assets, reduce debt, and improve profitability. The IPO of MCH on the HoSE, along with the possibility of Vietnam being upgraded to an emerging market in the near future, is expected to be a factor that will trigger capital inflows into MSN shares.

Source: https://dantri.com.vn/kinh-doanh/trien-vong-cua-co-phieu-msn-20250515150741070.htm