Company Insight

Initial Valuation with a BUY Recommendation, Target Price of 76,400 VND

Song Hong Garment Joint Stock Company (HOSE: MSH) is one of the leading enterprises in manufacturing export garments and bedding in Vietnam. With an export turnover of nearly 300 million USD/year, MSH is currently in the top 10 enterprises with the largest garment export value in Vietnam. Based on the P/E and DCF methods with a ratio of 50:50, we initially valued MSH shares at VND 76,400, corresponding to a profit margin of 30%. In the long term, we expect MSH's profits to grow thanks to: (i) MSH is one of the leading enterprises in the textile industry in terms of scale, production capacity and export turnover, (ii) Focusing on FOB orders to improve competitiveness, create high added value and bring good profit margins, (iii) Xuan Truong II Factory and the joint venture project in Egypt will be a key drivers of growth from 2025 onwards, (iv) Healthy financial structure and stable policy dividends.