Specifically, as of June 7, Masan's capitalization reached VND116,821 billion and the total capitalization value of ownership in Masan Consumer and Techcombank was VND118,508 billion (after deducting net debt on the separate financial statements). These figures reflect that the capitalization value of Masan's member companies and affiliates, Masan Consumer and Techcombank, alone is equal to or even exceeds Masan's capitalization value. This also implies that shareholders owning MSN shares at the current price range are "given for free" other valuable assets of Masan such as Masan MEATLife (MML), Masan High-Tech Materials (MSR), WinCommerce (WCM), Phuc Long Heritage, etc. In addition, the growth potential of the two assets Masan Consumer and Techcombank is also promising this year, contributing to further promoting Masan's value.
Masan Consumer, top 10 most valuable companies on the stock exchange
According to information at the recent 2024 annual general meeting of shareholders, Masan Consumer plans to list all 717,504,156 outstanding shares of the company on the Ho Chi Minh City Stock Exchange (HOSE). As of June 21, 2024, MCH is trading on the Upcom floor with a closing price of VND202,500, equivalent to a market capitalization of more than VND158,000 billion (USD6.2 billion). Masan currently owns 68% of MCH's equity.
In the near future, with the current capitalization of over VND 158,000 billion, when MCH is listed on HOSE, this enterprise will be in the top 10 companies with the highest capitalization value on the stock exchange and will have 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 over USD 1.8 billion. Both of these funds belong to the Dragon Capital fund management company. With the above potential, MCH's valuation still has a lot of room for growth when the company's shares are listed on the HOSE and purchased by funds.
Recently, Masan Consumer announced that it will pay a cash dividend of 55% in July and ask for shareholders' opinions to pay an interim dividend for 2024. This reveals that the company will continue to pay dividends this year after the previous decision to pay a dividend of 100%.
According to the latest report from HSC Securities, MCH is currently valued at 7.3 billion USD. With the current capitalization value, MCH has the potential to grow up to 18%.
In terms of capitalization, Masan Consumer's current figure has surpassed Masan (MSN). With key ownership at MCH, MSN's stock price is reflecting the fact that the intrinsic value of the enterprise has not been fully reflected. Specifically, in addition to MCH, Masan also owns other segments such as WinCommerce, Masan MEATLife, Masan High-Tech Materials, Phuc Long Heritage, shares at Techcombank , etc. Masan is like a house in which the assets of Masan Consumer and Techcombank alone exceed the value of the house without taking into account other assets. MCH has not stopped there, this enterprise possesses a lot of potential to continue to break through in the future, thereby expanding the potential for stock price increases.
Received more than 1,000 billion VND from Techcombank
On May 2, the Board of Directors of Techcombank (TCB) issued a decision to implement cash dividends and bonus shares. Specifically, the last registration date to exercise the right to receive cash dividends is May 22, 2024. The implementation rate is 15%/share, meaning 1 share receives 1,500 VND, the dividend payment date is June 5, 2024. Owning 19.9% of economic interests at TCB, Masan is expected to receive more than 1,000 billion VND, helping the company to facilitate the work of reducing financial leverage.
In the first quarter of 2024, Vietnam Technological and Commercial Joint Stock Bank (TCB) recorded impressive business results with after-tax profit increasing sharply by 38.3% compared to the same period last year, reaching VND6,277 billion. According to the latest report of Vietcap Securities, TCB expects to record positive business results thanks to improved NIM. "We expect NIM to improve slightly by 8 basis points in 2024 compared to 2023, and increase by 12-13 basis points/year in 2025 and 2026," the report stated. In addition, Vietcap also adjusted down the average credit cost for the period 2024-2028 from 1.0% to 0.8% due to a more optimistic view on the recovery of the real estate industry. TCB's positive outlook will also contribute positively to Masan's overall profit.
Positive about Masan's prospects, in a recent report, Vietcap maintained an optimistic view on the prospects of the leading consumer segment with MSN's wide range of operations. Masan will benefit from the consumption growth in Vietnam in the long term. This unit increased its target price and recommended BUY MSN shares with a target price of VND102,800/share.
“We believe MSN’s diversified consumer business is well-positioned for Vietnam’s consumption growth. We forecast an 18% compound annual growth rate of operating profit (CAGR EBIT) over 2023-28F for MSN’s consumer retail business,” the report stated.
Source: https://www.masangroup.com/vi/news/invest-in-vietnam/Why-financial-institutions-are-optimistic-on-Masan-Group-share-price.html
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