3 growth motivations of Masan Consumer stock price

Masan Consumer's market capitalization has reached nearly 6,4 billion USD, an increase of 100.000 billion VND since the beginning of year, surpassing Masan Group (parent company of Masan Consumer) and other listed subsidiaries of Masan’s own such as Masan High-Tech Materials (MHT), Netco (NET), Masan MEATLife (MML) and Vinacafé Bien Hoa (VCF) combined. Masan Consumer stock price sustains the growth momentum due to recent positive information, including business performance and ability to raise additional capital.

Masan Consumer Holdings (“MCH”) maintains the positive trend, continuously hitting new peaks. Specifically, at the end of the trading session on June 28th, Masan Consumer stock price reached 222.000 VND/share, an increase of 154% since the beginning of the year until now.

With 717,5 million of shares, the company’s market capitalization established the value of 159.285 billion VND, approximately 6,4 billion USD. This valuation exceeds that of its "parent company", Masan Group ("MSN"), as well as far surpasses other listed subsidiaries such as Masan High-Tech Materials (MHT), Netco (NET), Masan MEATLife (MML) and Vinacafé Bien Hoa (VCF). Overall, MCH's market capitalization value is currently higher than MSN, MHT, NET, MML, and VCF combined.

Once MCH is listed on the Ho Chi Minh City Stock Exchange (HOSE), Masan Consumer will be ranked among top 10 large-cap enterprises on the stock exchange. Consequently, it could be included in the list of important indexes of Vn-Index, bringing MCH into the holding portfolio of large funds on the stock market. For example, with the same market capitalization, VPB shares of Vietnam Prosperity Joint Stock Commercial Bank currently account for 6% in the portfolio of DCVFMVVN30 fund, the VN30 index simulation fund, and 8,5% in VEIL fund, one of the largest foreign funds investing in the Vietnamese stock market with the net asset value of more than 1,8 billion USD. Both funds belong to Dragon Capital Fund Management Company. Accordingly, there is still room for improvement of Masan Consumer stock price once MCH is listed on HOSE and bought by many funds.

MCH's report revealed the growth of business performance year-over-year. In 2023, the company set the record revenue and EBITDA of 29.066 billion VND and 7.431 billion VND. The shareholders approved to pay cash dividends at a rate of 100% (1 share receives 10,000 VND). Masan Consumer stock price also continuously accelerated in the stock market to meet investors' expectations.

By the first quarter of 2024, the company reached 6.727 billion VND in revenue and 1.705 billion VND in net profit, an increase of 7,4% and 16,3% versus the same period last year. Gross profit margin continued to reach 45,9% - only lower than the fourth quarter of 2024 and 4% higher than the same period last year.

According to a recent report by SSI Securities Company, Masan Consumer share is interesting because the enterprise has significantly outperformed its peers in the same industry in recent years (revenue CAGR reached 10% and CAGR NPAT reached 11% in the period 2019-2023). The growth momentum of Masan Consumer stock price is expected to continue in 2024-2025 thanks to recovering consumption, research activities to launch new products for the domestic market and boost exports. Masan Consumer's competitiveness thanks to being in an ecosystem with WinCommerce will increase the company's value. Gross profit margin is maintained above 45% thanks to product premiumization activities.

According to the General Meeting of Shareholders, Masan Consumer's strategic goal is to own 6 billion USD Big Brands, premiumize products and expand the product range for every single brand, and the accessible market from 100 million consumers in Vietnam to 8 billion people globally.

The development prospects of businesses in the consumer goods group in 2024 are supported by expectations of economic recovery and consumption demand, along with the Government's adoption of a 2% value-added tax rate reduction policy (VAT), applying to groups of goods and services that are currently subject to a tax rate of 10% (remaining 8%).

Moreover, the growth motivation of Masan Consumer stock price also comes from some new "stories" that the company has implemented properly from 2023 until now: product premiumization, “Go Global” strategy and HOSE listing plan.

Product premiumization

According to Truong Cong Thang, CEO of Masan Consumer, at the General Meeting of Shareholders of Masan Consumer, MCH currently boasts 5 major consumer goods brands, each generating sales of about 150-250 million USD and has a significant market presence. These brands-CHIN-SU, Nam Ngu, Omachi, Kokomi, and Wake-Up 247—have become household names for millions of Vietnamese people, contributing to 80% of MCH's domestic revenue over the past 7 years.

Capitalizing on opportunities in the consumer market, Masan Consumer consistently innovates and enhances its products to cater to the increasingly diverse needs of customers in their own homes, from the kitchen with Chin-su, Nam Ngu, Omachi... to the bathroom with Chante, Net... And aiming for Out-of-Home with self-boiling hot pot products, self-cooking rice...

Currently, Masan Consumer focuses on building 6 billion-USD Big Brands to reach the top revenue in the entire Southeast Asia and Asia region. They are expected to be the growth engines of Masan Consumer stock price to scale new records.

The formula for building billion-dollar Big Brands is based on premiumizing consumer products by breakthrough initiatives; expanding the scale of each Big Brand; WIN membership program and Point of Life ecosystem. “If we want to reach the top revenue in Southeast Asia, we can’t just do business in Vietnam and waiting for orders... but must bring Vietnam's most unique products to regions outside", Mr. Truong Cong Thang emphasized.

He revealed that Masan Consumer will build 6 Big Brands, spending 80% of the marketing budget to create new demands and add more values to expand the scale of Big Brands.

In addition, the process of digitizing all POS (points of sale), e-commerce and WIN membership also needs the support of many group parties to further improve the quality of customer service as well as build a youthful workforce for the future.

“Go Global” strategy

According to information from the General Meeting of Shareholders of Masan Group on April 25, Nguyen Dang Quang, Chairman, shared that “Masan Consumer is a "heirloom diamond", a pride in its mission of serving consumers".

Until now, 98% of households in Vietnam have at least one Masan Consumer product as the company has built a product line system starting from the kitchen, refrigerator to the living room, bathroom. In a market of about 8 billion USD, Masan Consumer has basically served all the essential needs at home.

However, as compared to the scale of the entire FMCG market in Vietnam of up to 32 billion USD, Masan Consumer's market share is less than 5%. Therefore, Masan Group's leaders want to target a larger, more advanced market than out-of-home, starting with a product line of self-boiling hot pot and self-cooking rice under the Omachi brand.

Year 2023 marks Masan Consumer's outstanding growth when applying the strategy "Go Global - bringing Vietnamese brands to the world" towards two goals: The first one is by 2027, contributing 15% of sales from international business activities. The second one is to develop Chin-su - the leading spice brand in Vietnam, to become an international brand that brings Vietnamese spices to the world. With a current growth rate of 4%, Masan Consumer sets an additional growth rate of 2-3% per year, equivalent to an increase of nearly 4 times by 2027.

By the “Go Global” strategy, Masan Consumer expanded its market size by 131 times, reaching 3.100 billion USD. Entering 2024, the company plans to increase its customer base to 8 billion consumers. The continuous growth momentum of Masan Consumer stock price with high liquidity is proof of the market's strong confidence in the achievements the business has achieved over the past time.

HOSE listing plan

Possessing the leading position in the consumer goods industry, with outstanding business growth in recent years, Masan Consumer stock price has continuously set the peak, it is not difficult for MCH to meet listing conditions (currently trading at UPCoM).

Masan Consumer's Annual General Meeting of Shareholders 2024 approved the important content: the policy of listing all MCH shares on the Ho Chi Minh City Stock Exchange (HOSE). This is truly a groundbreaking decision that opens a potential path to help Masan Consumer stock maximize the large capacity of the MCH code.

Currently, other subsidiaries of Masan Group (MSN) have listed shares, including Vinacafé Bien Hoa (VCF) or Netco (NET), while the capitalization size is very small compared to Masan Consumer.

When first listed and traded on the UPCoM market in January 2017, the reference Masan Consumer stock price was 90.000 VND/share (unadjusted price). In the most recent year, MCH has recorded an average trading volume of about 63.000 shares. However, this number has increased 3 times in the last 1 month (about 260.000 shares per session).

According to updated information from Bloomberg News, Masan Consumer is currently listed on UpCom but this market liquidity is very low. Therefore, HSBC's analysis report believes that HOSE listing plan can help Masan Consumer stock price grow steadily, improve liquidity, in line with the great capacity that enterprise has achieved for the past many years.

This year, MCH plans to achieve revenue from 32.500 billion VND to 36.000 billion VND, with main growth contribution from convenience food, beverage and home and personal care industries. Masan Consumer stock price is expected to keep up with the positive business prospects.