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March 13, 2025

Consumer retail stocks poised for growth amid market upgrades

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    A VN30-listed stock is expected to receive foreign capital inflows as Vietnam’s stock market undergoes an upgrade, and the HOSE-Index 4.0 is officially implemented. The Ho Chi Minh Stock Exchange (HOSE) has issued new regulations for the HOSE-Index system, limiting the market capitalization weight of any single industry to a maximum of 40%, effective December 30, 2024. Along with Vietnam's potential stock market upgrade, these adjustments could positively impact liquidity and the position of MSN shares, the flagship stock of Masan Group.

    Market Upgrades and VN30 Index Adjustments: A Boon for MSN

    FTSE Russell recently announced that it will release its mid-term review results on national market classifications after the US market closes on April 8, 2025, which corresponds to the early hours of April 9, 2025, in Vietnam.

    Accordingly, Vietnam's stock market is on the verge of being upgraded to the Emerging Market category. According to SSI Research, stocks such as VNM, VHM, VIC, HPG, VCB, SSI, MSN, VND, DGC, VRE, and VCI are among those that could attract significant capital inflows if the upgrade materializes. Particularly, MSN is one of the large-cap stocks with remaining foreign ownership room, creating favorable conditions for increased foreign investor participation.

    Additionally, on December 30, 2024, HOSE announced the 4.0 version of its HOSE-Index construction and management regulations, along with Decision No. 747/QD-SGDHCM issued by the HOSE Chairman. This decision will take effect after 60 days, meaning the new rules for the HOSE-Index 4.0 will be applied starting March 2025.

    A key factor in the VN30 index review for Q2 2025 will be the 40% industry weight cap, based on GICS 1 industry classification standards. Currently, the Financials sector under GICS 1 includes sub-industries such as Banking, Securities, and Insurance.

    During the periodic rebalancing, stocks within the Financials sector will have their weight reduced, while stocks from other sectors within the VN30 basket will receive reallocated capital inflows. No current VN30 stock will be removed in favor of new additions. This adjustment creates an opportunity for large-cap stocks such as MSN to receive additional investment allocations.

    Notably, during the most recent ETF portfolio rebalancing, MSN shares also attracted significant interest from ETFs. According to a recent report from BISV Securities (BSC), the stocks with the highest purchases from both FTSE ETF and VNM ETF were:SHB (34 million shares), EIB (15.2 million shares), DXG (4.6 million shares), MSN (3.3 million shares), HPG (3 million shares).


    Profit Growth Targeted at 52% in 2025

    During an investor and shareholder meeting in February 2025, Masan Group outlined ambitious profit growth targets, driven by strong momentum across its core business segments. According to the company’s plan, Masan expects consolidated net revenue to reach between VND 80,000 – 85,500 billion, reflecting a 7% to 14% increase from the previous year. Meanwhile, net profit after tax (NPAT Pre-MI) is projected to be VND 4,875 – 6,500 billion, marking a 14% to 52% year-over-year growth.

    Dr. Nguyen Dang Quang, Chairman of Masan Group, emphasized: "In 2024, we prioritized developing a business model that delivers sustainable profitability. WinCommerce and Masan MEATLife have achieved positive profitability, creating a solid foundation for other business segments to maintain double-digit growth in 2025 and beyond.”

    Masan is also accelerating the expansion of the WiN Membership program, targeting both modern and traditional retail channels. This strategy aims to broaden Masan’s customer base and enhance brand value, extending its reach across grocery stores, supermarkets, convenience stores, and hypermarkets, while optimizing its nationwide distribution network. Beyond the domestic market, Masan is aggressively executing its "Go Global" strategy, aiming to expand market share across the region and internationally. The group targets over 20% revenue growth from overseas markets, leveraging the global appeal of its seasonings, convenience foods, and instant coffee products.

    Masan’s flagship brands, particularly CHIN-SU and Omachi, are already present on major international e-commerce platforms such as Coupang (South Korea) and Amazon (USA). Additionally, Masan’s agricultural exports, such as WinEco hydroponic lettuce to South Korea, are critical steps in its global market expansion strategy.

    With favorable conditions stemming from VN30 index adjustments, Vietnam's market upgrade, and Masan’s well-executed strategic initiatives, MSN is well-positioned for a breakout year in 2025.

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