Company Insight

Song Hong Garment Joint Stock Company (HOSE: MSH) is one of the leading enterprises in manufacturing export garments and bedding in Vietnam. MSH's 1H2025 recorded net revenue of VND2,503 billion (+19% YoY), NPAT of VND 267 billion (+92% YoY), completing 46% and 55% of the yearly plan, respectively. Positive growth results are mainly thanks to the strong increase in front-loading demand during the 90-day tax deferral. In the second half of 2025, when the front-loading situation cools down, we assess that MSH's order volume will not grow as dramatically as in 1H2025 but will remain stable around the average of the last 5 years thanks to: (1) The year-end and New Year holiday season is approaching, (2) Textile and garment inventories in the US are at a low level; (3) Effectively exploiting tariff advantages and strong internal production capacity to maintain market share, (4) Growth in processing orders offsets the decline in FOB demand. In the medium and long term, we believe that accelerating joint venture investment in the fabric weaving stage will be a key factor for Song Hong Garment to increase competitiveness and attract new customers in the key US market.

Based on the DCF method, we update MSH's target price at VND 44,675; corresponding to an upside of 16.1%.