Masan Consumer announced plans to transfer MCH stock trading from UPCoM to HoSE; Expect to increase the valuation of Masan stocks such as MCH and MSN.
The information states the resolution passed by the board of directors on October 2. Previously, at the investor meeting held in early May, Mr. Danny Le, General Director of Masan Group, said that Masan Consumer has achieved an average growth rate of 15% per year over the past 6-7 years. At this rate, he said: “It’s time to consider implementing a potential IPO plan.”
Discussing this plan, according to HSBC, switching to listing on HoSE can help MCH shares improve liquidity and match the capacity that the company has achieved. The capacity mentioned is a stable business history with high growth, significantly outperforming other companies in the same FMCG and packaged food industry in the region. In HSBC’s report, the company grew at a rate 2.2 times faster than the general market, considering the period 2017-2023.
Consumers shop for Masan products at supermarkets. Image: Masan Consumer
MCH’s starting point and mainstay industry is spices. Up to now, the business has participated in 8 main consumer goods industries in Vietnam. Among them, there are 5 brands with annual revenue of 150-250 million USD.
According to Kantar, more than 98% of Vietnamese households own at least one Masan Consumer product. Among them, Chin-su and Nam Ngu are the most chosen brands in urban areas. In rural areas, 4 prominent brands are Nam Ngu, Chin-su, Kokomi and Tam Thai Tu. “In both rural and urban areas, we have loyal customers who are willing to experience new products, helping to increase product sales in many different categories,” said a representative of the unit.
According to the company’s latest report, Masan Consumer continues to extend its record growth momentum in 2023 with positive business results in the second quarter of 2024. Specifically, revenue increased by 14%, gross profit margin remained at 46.3%. The highest growth rate was in industries such as convenience foods, beverages and coffee, recording increases of 20.7%, 17.6% and 16% respectively over the same period in 2023. In addition, The company’s Go Global strategy also achieved positive results with export revenue increasing by 17% over the same period last year.
This year, the company targets net revenue from 32,500 to 36,000 billion VND. The focus of the plan is to own 6 billion USD brands and achieve 10-20% of revenue from the global market, premiumize products and expand the product range for each brand. The unit expects to increase the accessible market from 100 million Vietnamese consumers to 8 billion people globally.
Masan’s consumer products are chosen by many young people. Image: Masan Consumer
In addition to the plan to change the listing floor and the company’s capacity, Masan stock family also expects to receive an additional boost from the market upgrade. On September 18, the Ministry of Finance passed a circular related to foreign institutional investors being able to buy stocks without requiring enough money (non-pre-funding) and a roadmap for information disclosure in English. . This is a step closer for the Vietnamese stock market to meet the requirements for upgrading to emerging market status by FTSE Russell.
SSI Research forecasts that Vietnam will be upgraded in the September 2025 assessment period. With the upgrade to emerging market status, according to preliminary estimates, capital flows into the Vietnamese market from ETF funds could reach 1.7 billion USD, not including capital flows from active funds (FTSE). Russell estimates total assets from active funds are five times that of ETFs.) This is also a positive catalyst for businesses planning to IPO in 2025 like Masan Consumer.
According to some experts, foreign capital flows want to learn about the story of the FMCG fast-moving consumer goods industry, making long-term investments in businesses with a stable business history with high growth and dividend payments. “huge”, Masan Consumer’s MCH stock will be one of the potential options. Also in the resolution announced on October 2, the unit said that many large investment funds are holding MCH shares. Of which, Albizia Asean Tenggara Fund owns 3.8 million shares; Vietcap Securities holds 2.7 million shares and the Bill & Melinda Gates Foundation Trust has more than 1.04 million shares.