Masan Group stock receive large investment cash flows
Masan Group stock (MSN) is in the VN30 index basket, belonging to a group of 30 stocks accounting for about 80% of the total capitalization value and 60% of the total trading value of the Vietnamese stock market. With the expectation of recovery in the consumer market, the upgrade of the stock market and the sustainable growth momentum of the business, Masan Group stock is receiving the attention of domestic and foreign investors.
Expectations of recovery of the consumer market
Masan is a multi-industry corporation operating in many fields, from retail, consumer goods production (dipping sauce, instant noodles, drinks, washing powder...), livestock and meat processing, telecommunications, to mining minerals,... In particular, the consumer and retail business is currently the focus of investment and brings the highest revenue and profit to the group. Therefore, the Vietnamese consumer market, as well as factors affecting markets in the region and the world, can affect Masan's business operations and Masan Group stock’s price.
Entering 2024, Vietnam's consumer market is predicted to recover steadily in the context of improved economic prospects. Masan's core business activities are also evaluated for positive growth, helping Masan Group stock and MSN attract attention from investors.
Stable macroeconomic situation: According to data from the International Monetary Fund (IMF), Vietnam's population is nearly 100 million people, with half of them under 32 years old. In 2024, Vietnam targets economic growth of 6 – 6.5% with motivation coming from FDI capital, export activities recovering and returning to growth, and consumer confidence returning. In addition, GDP is forecast to increase by 5.8%, helping Vietnam become one of the 20 economies with the highest growth rate globally.
Support policies: The Vietnamese government has issued many economic support policies to increase domestic consumption. Typically, the salary reform policy begins to be implemented on July 1, 2024. Or like some fiscal stimulus packages, including a 2% reduction in value-added tax (VAT) in the first half of 2024. The trend of reducing lending interest rates is expected to maintain. Stable people's income also helps improve the bad debt ratio at consumer lending companies, helping consumer credit return in the second half of 2024.
Followed by policies to support the recovery of tourism. According to VnDirect Securities, the number of domestic tourists in Vietnam is expected to increase by 7%, and international visitors by 30%. Therefore, promoting total retail sales, accommodation and food services helps the consumer market improve strongly.
Consumers are optimistic: According to financial institution UBS, Vietnam's private consumption is expected to increase by 7.0% in 2024, the highest growth rate in the region. The General Statistics Office said that in just the first 3 months of the year, total retail sales of goods and consumer service revenue increased by 8.2% compared to the same period in 2023. Stocks in low-risk industry groups such as consumption, retail, healthcare, pharmaceuticals, utilities,... receive attention from foreign investment funds. That includes Masan Group stock.
The Vietnamese consumer optimism index continues to rank high
According to UBS Evidence Lab, Asian’s consumer confidence will increase as the ability to maintain a job becomes more positive. In Vietnam, the consumer optimism index continues to rank high globally, contributing to stabilizing the domestic market.
Growing consumer demand: Another important factor is the rise of the middle class. According to the World Data Lab, Vietnam will have an additional 4 million middle class people by 2024 and 23.2 million people by 2030. When consumer income improves, the first beneficiaries will be retail and consumer businesses, including Masan.
Masan has a large number of domestic consumers: 98% of Vietnamese families have at least one Masan product. The inevitable demand for branded and high-quality products in Vietnam is continuously increasing, contributing to helping Masan Group stock become more promising in the eyes of investors.
Positive reviews from reputable financial institutions
Entering 2024, Masan stock has received in-depth analysis and positive reviews from many financial institutions.
According to the Vietnam stock market outlook report, J.P Morgan has chosen Masan Group stock (MSN) as its top investment priority when choosing the Vietnamese market. At the same time, set a valuation of 102,000 VND/share. Based on the above basis, investors have a great advantage when buying Masan stock at a market price much lower than the real value. The increased potential of Masan share is proportional to the profit the group's shareholders receive.
Also according to J.P Morgan, Masan Group stock is one of the best representatives for the modern consumption story of the Vietnamese market, a dynamic and potential market.
Stock analysts at Bao Viet Securities (BVSC) believe that Masan's most difficult period has passed. Masan's growth was driven by The CrownX with steady growth from Masan Consumer Holdings and WinCommerce continuing to improve operating efficiency. Depending on actual macroeconomic conditions, a strong recovery in profits will become a growth driver for Masan stock.
Sharing the same view about the positive prospects of Masan Group share price, HSC Securities Company in early April updated an in-depth report on the business and issued a BUY recommendation for MSN, the latest target price is 92,900 VND/Share.
According to VietCap's analysis report, Masan owns many consumer businesses, from food and beverage production to a national retail network, each segment has meaningful resonance with the other. Positioning itself as a consumer company, Masan increases its ownership and investments in consumer-related businesses, while divesting from non-core businesses. This is a strategy that VietCap evaluates as significantly increasing corporate value, as well as supporting the price prospects of Masan Group stock.
The capital injection story of Bain Capital - an American private investment fund managing about 180 billion USD is also a bright spot supporting the breakthrough of Masan stock. Bain Capital's $250 million investment deal is expected to be completed on April 22. Foreign capital will help Masan increase its flexibility in managing its balance sheet, fulfilling its financial obligations and investing in future consumer-focused business activities. Notably, the price Bain Capital accepted to invest capital was 85,000 VND/Stock, higher than the market value of Masan Group stock, showing the growth potential of the business.
Another aspect of interest, potentially directly affecting the value of Masan shares, is the positive momentum of the Vietnamese stock market, including the story of upgrading the market to EM (Emerging Market). According to the World Bank, if the market upgrade is successful, Vietnam can attract about 25 billion USD of international investment capital by 2030.
Scientific conference "Solutions to upgrade Vietnam's stock market" organized by the Ministry of Finance in collaboration with the World Bank
Currently, Masan Group stock is listed on the Ho Chi Minh City Stock Exchange (HOSE), belonging to the VN30 stock group. This is a basket of stocks including blue chips, accounting for about 80% of the total capitalization value and 60% of the total transaction value of the Vietnamese stock market. At the same time, these are the stocks that will benefit first and directly when foreign capital flows into Vietnam. Because international investment funds often choose stocks of leading businesses in the industry, with good financial foundations, transparent information, and a clear strategic vision for development and sustainable profits in the future. Masan Group is one of them. Masan stock (MSN) attracts foreign capital, facing the opportunity of abundant money from the international investment market.
It can be seen that, after analyzing the intrinsic value of the business, financial institutions believe that Masan Group stock is underperforming and is a good investment opportunity for investors.
Holding free cash flow equivalent to 1 billion USD, Masan implements new business initiatives, improves profits and avoids risks of market fluctuations. In addition, Masan is on track to build a consumer-technology ecosystem for the market, as well as promote digital transformation to optimally exploit e-commerce channels and digital utilities to meet the diverse needs of consumers. At each stage of growth there are realistic plans and strategies.
In 2024, Masan Group targets consolidated net revenue of 84,000 - 90,000 billion VND, an increase of 7 - 15% over the same period in 2023; After-tax profit before allocation to minority shareholders is expected to reach 2,290 - 4,020 billion VND, an increase of 17% and double compared to the previous year.
Facing opportunities in 2024, Masan Group stock is receiving the attention of both individuals and organizations, domestic and international investors.