Company Insight

Song Hong Garment Joint Stock Company (HOSE: MSH) is one of the leading enterprises in manufacturing export garments and bedding in Vietnam. Based on the DCF method, we update MSH's target price at VND 44,675; corresponding to an upside of 21.1%.

MSH's Q1/2025 business results recorded positive growth thanks to the recovery of demand in the key US market, which help to increase both selling prices and the number of orders. In 2025, given the uncertainties about the tariff, we assess that MSH in particular and the Vietnamese textile and garment industry in general will be affected, but the actual impact level is not too negative thanks to: (1) Vietnam is still a large garment manufacturing market that is difficult to replace in the short and medium term because of the advantages of a highly skilled workforce, diverse products, large production capacity, fast delivery speed and political stability; (2) MSH has a good competitive position with a stable supply chain; manufacturing complex, high value-added products; competitive production costs and long-term relationships with major customers; (3) The shift of orders out of China is expected to partly offset the decline in orders in the US market in Q3,4/2025.