Company Insight

Masan Group Corporation (Masan, HOSE: MSN) is one of the largest private multi-industry economic groups in Vietnam with a focus on consumer retail, which is expected to benefit from demographics and the expansion of the middle class, besides, it alse holds interest in the mining - resources segment and at Techcombank. Established in 1996, the group has significantly enlarged its scale through strategic M&A deals.

We publish an update report with a HOLD recommendation and raise our target price to VND 91,580. We expect: (1) Positive growth in the core consumer - retail segment will create momentum for profit growth as WinCommerce (WCM) and Masan MEATLife (MML) started to make profits from Q3/2024 and will maintain growth momentum in the next period; (2) Although Masan Consumer (MCH) recorded negative growth results in the first half of the year due to the impact of new regulations on invoices and taxes for business households, we expect revenue to start growing again from Q4; (3) Losses from Masan High-tech (MHT) after restructuring will be reduced, even managed to record positive NPAT in Q2; (4) Motivation from MCH’s uplisting to HOSE and foreign capital flow in the market upgrade scenario.

We estimate full-year revenue to reach VND 82,019 billion, if excluding the contribution from MHT, revenue increased by 9.1% YoY, NPAT reached VND 5,234 billion (+22.5% YoY) and NPAT-Mi reached VND2,773 billion (+38.7% YoY). We expect sustainable growth momentum to come from the WCM network when it increases the speed of new openings and increases profit margin per store, compensating for MCH's slowdown due to short-term disadvantages.