What are the key drivers for the increase of Masan Consumer stock price?
With the strong increase of Masan consumer stock price recently, traded at the price of 181,000/share on May 23. Masan Consumer's market capitalization (Stock code: MCH) exceeds 128,000 billion VND, ranking it among the top consumer companies in Vietnam. In the consumer sector, Vinamilk leads with a capitalization value of 138,000 billion VND, followed by Masan Consumer. Mobile World and Sabeco follow with capitalization values of over 87,100 billion VND and 74,700 billion VND, respectively.
Owning "love brand" brands
At the 2024 AGM, Mr. Truong Cong Thang, CEO of Masan Consumer, announced that the company has successfully built five brands—Kokomi, Omachi, CHIN-SU, Nam Ngu, and Wakeup-247—each generating annual revenue of $150-250 million. These brands contribute nearly 80% to Masan Consumer's revenue growth. According to Kantar Worldpanel's report, CHIN-SU and Nam Ngu have consistently been among the top brands chosen by consumers in both urban and rural areas for many consecutive years. This factor could be a positive catalyst for Masan consumer stock price.
In addition to these five key brands, Masan Consumer owns several other "love brands" that consumers favor and choose for various living spaces: kitchen (CHIN-SU, Nam Ngu, Omachi, Kokomi), refrigerator (Hi-Fresh), living room (Vinacafé, Wake-up), bathroom (Chanté, Net, Joins 2 in 1, La'Petal), and out-of-home (Wake-up 247, Bupnon TEA365, Vivant).
Regarding "love brands," a Masan Consumer representative explained that this term refers to brands cherished and supported by consumers for their emotional benefits and the affection they evoke, beyond just product benefits. These values have been sustainably and continuously built over many years, creating a unique connection that resonates deeply with consumers, unlike any other convenience food brand in the Vietnamese market. For example, Omachi is considered a "love brand" because it offers consumers added value, ranging fr om rational to emotional, culminating in an exceptional experience. Discussing the Omachi self-boiling hot pot product, the brand representative said: "We provide consumers with the experience of self-pampering and rewarding themselves with what they truly deserve."
Capitalize on the e-commerce trend
Although Masan Consumer only officially joined e-commerce platforms in Vietnam in March 2023, the company quickly achieved impressive results. Since May 2023, Masan Consumer has focused on traditional e-commerce events such as Brand Day, Mega Event, and Flash Sale on Lazada and Shopee, providing a convenient shopping experience for Vietnamese consumers.
Amid the growing trend of shoppertainment, Masan Consumer has partnered with Lazada, TikTok Shop, and KOLs/KOCs to conduct a series of online sales sessions (livestreams). These sessions allow users to quickly access new, high-quality, and interesting products. Items like CHIN-SU Great Banquet chili sauce 2kg, Nam Ngu fish sauce collection, Omachi self-boiling hotpot, Omachi mixed noodles with grilled meat skewers, "Open Big Noodles for Tet," "Spice Banquet," and "Young Warm, She's Cup" have reached over 10 million users and garnered a record 35 million interactions. This factor could be a positive catalyst not of ly for Masan consumer stock price but also for its earning performance.
Masan Consumer prioritizes providing consumers with seamless online shopping experiences, along with various incentives and swift delivery services that adhere to high packaging standards. These are among the company's top operational goals for customers shopping through e-commerce channels.
With promising outcomes, e-commerce holds a crucial strategic role for Masan Consumer in 2024. It not only drives significant sales of premium products but also serves as the exclusive platform for introducing all new products to consumers within their first week of availability. Additionally, Masan Consumer aims to swiftly and effectively build strong "brand assets" tailored for the right consumers at the right digital touchpoints.
Profit margins exceed those of FMCG companies in the region
From 2017 to 2023, Masan Consumer grew at a pace 2.2 times faster than the general market. According to a recent HSBC report, Masan Consumer boasts high profit margins, stable revenue growth, and significant outperformance compared to peers in the FMCG and packaged food sectors across the region.
In 2023, the company achieved a record profit with a post-tax profit of VND 7,195 billion, marking a 30% increase from 2022. Earnings per share (EPS) in 2023 reached 9,888 VND/share, a notable rise from 7,612 VND/share in 2022.
Looking ahead to 2024, Masan leaders announced a focus on nurturing Masan Consumer Holdings (MCH) as a "heirloom diamond," and implementing a Go Global strategy to position itself as a culinary ambassador to 8 billion global consumers with robust Vietnamese brands. The group aims for 10-20% of its revenue to come from the global market.
The current market capitalization of Masan Consumer stock price has surpassed that of Masan (MSN). The ownership structure at MCH suggests that MSN's share price may not fully reflect the intrinsic value of its diverse business segments. Apart from MCH, Masan holds interests in WinCommerce, Masan MEATLife, Masan High-Tech Materials, Phuc Long Heritage, and shares in Techcombank, among others. Masan can be likened to a house with valuable assets, wh ere MCH's "heirloom diamond" value exceeds the house's total value when considering these other assets. Also, Masan consumer stock price and the company potential for future breakthroughs remains robust and promising.