Company Insight

Song Hong Garment JSC (HOSE: MSH) is a leading Vietnamese manufacturer of export garments and bedding products. In 1H2026, MSH maintained steady growth momentum, with net revenue rising 8% YoY and NPAT increasing 7% YoY. These positive results were driven by MSH benefiting from the trend of Chinese manufacturers shifting a portion of their CMT (Cut-Make-Trim) orders to Vietnam amidst rising domestic production costs in China. Looking ahead to 2H2026, although the US market faces pressure from sluggish demand recovery and the impact of Section 301 tariffs, we expect MSH to flexibly shift some orders to the Chinese market to mitigate US-related headwinds. Based on the Discounted Cash Flow (DCF) method, we have updated MSH’s target price to VND38,600, representing an upside of 27.8%.