Masan Group's MSN shares are positively evaluated by many financial institutions.

With an optimistic business outlook, Masan Group has received much attention from domestic and international investors. Masan (MSN) stock price is entering a good price range, promising to become an attractive profitable investment in the near future.

Opportunities from the market Vietnam's economy and consumer market are on the path to a strong recovery from the low base in 2023. Accordingly, the group of manufacturing and retail stocks will benefit directly, attracting cash flow from investors, creating momentum for stock prices to increase. This is one of the reasons for the positive impact on Masan (MSN) stock price. In 2024, financial institutions have a common forecast for Vietnam's economic recovery. The International Monetary Fund, the World Bank and the Asian Development Bank forecast that Vietnam's economy will grow by 6.9%, 5.5% and 6% in 2024. Accordingly, Vietnam continues to be one of the fastest growing countries in the world. Compared to some countries in the region, Thailand's growth is expected to be from 2.7% to 3.7%, Indonesia from 4.9% to 5%, Singapore from 2.1% to 4.8% and Malaysia from 4% to 4.9%,... Vietnam shows a stronger recovery momentum and the bright spot may come from the consumer and retail sectors. According to recent data from the General Statistics Office, the consumer price index (CPI) in the first quarter of 2024 increased by 3.77% over the same period in 2023. Of the 11 main consumer goods groups, 10 groups increased in price and 1 group decreased in price.

CPI increase/decrease rate in the first quarter of 2024 compared to the same period last year (Photo: General Statistics Office)

The consumer stimulus policies issued by the Government have been proving effective. Low interest rates and controlled inflation are the driving force to stimulate consumer demand. In addition, the VAT reduction policy continues to be maintained, and salary reform will officially be implemented in 2024. Along with the increasing consumer demand of the people is a favorable environment for businesses in the industry, including Masan, to increase revenue and expand operations. The driving force for price increases comes from business prospects Specifically, Masan Group sets a business plan for 2024 with expected revenue of VND 84,000 billion - VND 90,000 billion, an increase of 7.3% - 15%. Profit after tax is expected to range from VND2,250 billion to VND4,020 billion, up 31% - 115% compared to 2023. In Masan Group's core consumer business, Masan Consumer Holdings continues to grow, targeting double-digit revenue and profit growth of 15-25% in 2024. WinCommerce, with 3,600 WinMart/WinMart+/WIN supermarkets and 8 million WIN members, is on track to reap sustainable profits. The global FMCG platform shows positive results in 2023 with CHIN-SU chili sauce in the top 8 best-selling products on Amazon (USA) and top 1 on Coupang e-commerce platform (Korea). MEATDeli begins to attract consumers on a large scale. The development strategies and establishment of consumer-technology ecosystems such as POL or Go Global are highly appreciated by investors for their medium and long-term prospects.

CHIN-SU chili sauce is in the top 8 Best Sellers on the Amazon e-commerce platform

According to SSI Research, Masan's operating profit is likely to increase by 177.4% to VND1,161 billion in the 2024 business year. Similarly, BSC Research, BVSC Research and HSC also gave similar positive profit growth prospects, forecasting increases of 204.1%, 294.4% and 399% respectively. The positive business outlook is also expected to be reflected in Masan's stock price in the coming time. With a rapidly growing economy, an expanding middle class and increasing urbanization, Vietnam is entering a growth phase of modern retail, creating opportunities for Masan's stock price to increase sharply in the future. According to JPMorgan: "Vietnam represents the most vibrant and remarkable consumer growth story in the Asia region". This prestigious financial institution values ​​Masan shares at VND102,000/share, 54% higher than the price of VND66,500/share on April 19. Many financial institutions also believe that Masan (MSN) shares are in a good area, ready to break out after a sufficient accumulation period. With a solid business foundation and optimistic market outlook, the stock shows sustainable profit potential for shareholders in the future. At the end of 2023, KBVS recommends BUYing MSN shares with the nearest target price of VND78,600/share based on the expectation of recovery of the retail - consumer industry and the reduced pressures. Or HSBC maintains its BUY recommendation for Masan shares with a new price target of VND98,000, up from the previous recommendation of VND91,000. And in the analysis report last April, HSC Securities Company said that Masan's difficult period is over. At the same time, it raised the target price for Masan shares by 21% to VND 92,900, recommending BUY. Masan Consumer Holdings IPO In the stock market, stock prices often perform well, even breaking out when the company has positive news. In 2024, investors will pay special attention to the initial public offering (IPO) story of Masan Consumer Holdings (Stock code: MCH), a member company of Masan's consumer-retail ecosystem The CrownX. MCH produces a variety of foods and beverages, including sauces, noodles, cereals, instant coffee and beer. In 2023, this company recorded VND 29,066 billion in net revenue and VND 7,431 billion in EBITDA. According to Bloomberg, Masan Group is cooperating with relevant financial advisors on the IPO of Masan Consumer Holdings. MCH's IPO is expected to help Masan Group raise from 1 to 1.5 billion USD. If successful, this will be a record-breaking capital raising deal, the largest scale on the Vietnamese stock market ever, surpassing the 1.4 billion USD IPO of Vinhomes (Stock code: VHM) in 2018. HSBC assessed that the IPO and transfer to HOSE will help MCH shares have higher liquidity. At the same time, according to the SOPT valuation method (total value of components), Masan Consumer accounts for 52% of Masan Group's value. Therefore, at the time MCH is revalued upon IPO, the price of Masan shares will also benefit, reflecting the business prospects of the group and its member and affiliated businesses. Quality IPOs not only bring strong foreign capital to domestic enterprises but also contribute to improving the business environment, promoting innovation and creating more jobs. For investors, this is an opportunity to participate in enterprises with high growth potential and be part of the regional economic development story. After the IPO news of MCH was shared by Bloomberg, the stock prices of Masan (MSN) and Masan Consumer (MCH) immediately responded positively. In the strong correction on April 17, VN-Index lost more than 22.7 points, 'breaking' the psychological support level of 1,200 points, Masan's stock price still went against the market trend. MSN became a rare bright spot to increase points among bluechip stocks, up 1.1% compared to the reference. In the context of the general market falling for 4 consecutive sessions, MCH stock still increased in price for 3 sessions. Abundant liquidity Notably, according to the financial report for the fourth quarter of 2023, Masan currently has nearly VND 17,000 billion in cash and bank deposits. This means that the company is in the top 20 companies with the largest amount of cash on the stock exchange. This partly brings a positive view to investors, affecting Masan's stock price. Masan's Free Cash Flow (FCF) has improved to VND 7,454 billion in 2023, a significant increase compared to VND 887 billion in 2022. With foreign investment capital of USD 250 million from Bain Capital and the amount of money after MCH and TCB pay dividends, Masan's total cash and cash equivalents will reach the USD 1 billion mark in the near future. Masan has also completed full payment of debt obligations due in 2023. Accordingly, liquidity is no longer a concern for Masan in the coming time. Revenue on the rise, abundant liquidity, and efforts to reduce benefits in the non-core consumer business segment will help Masan significantly reduce financial pressure, optimize profits for the group and shareholder value. Masan's stock price will also benefit directly from that. In addition, a factor that can greatly affect Masan's stock price is the story of the Vietnamese stock market's upgrade to an emerging market. With key issues in the upgrade process being quickly resolved by the management agency, Vietnam is closer to its goal than ever. Mr. Tran Hoang Son, Director of Strategic Analysis of VPBank Securities, shared: Vietnam's stock market has experienced three major growth waves, including: the WTO accession wave in 2007, the state capital divestment wave in enterprises in 2016 - 2017, the cheap money wave during the period when the economy was affected by the Covid-19 pandemic in 2020 - 2021. And now "the market is preparing for the fourth wave - the upgrade wave". In a recent report, SSI Securities forecast that Vietnam's emerging market upgrade could take place as early as September 2024 (according to the positive scenario) or March 2025 (according to the baseline scenario) and will take effect 6 months later. SSI also said that Vietnam's stock market could immediately attract capital flows of 1.7 - 2.5 billion USD when the upgrade decision takes effect. According to estimates by MSCI and FTSE Russell, a successful upgrade will help Vietnam attract $25 billion in new investment capital by 2030. According to Mirae Asset's forecast, when foreign capital flows into Vietnam, stocks in the current FTSE portfolio will be the first to benefit. Meanwhile, BSC Research believes that large-cap stocks in the VN30-Index, as well as other stocks that meet the criteria of liquidity, capitalization, and foreign ownership ratio, should also be noted by investors. In the case of Masan shares, MSN meets all of the above favorable conditions. Currently, Masan shares are listed on the HOSE, in the FTSE stock portfolio and in the VN30 bluechip basket with the largest liquidity and capitalization in the market. In the event that Vietnam is upgraded by organizations, MSN will be in the group of stocks leading the market. Masan's stock price has the opportunity to break out with foreign capital, bringing more value to shareholders. Among the current investment opportunities, Masan, with its stock price currently accumulating well, is considered one of the options worth considering. With financial stability, abundant working capital and positive growth potential, Masan is a notable investment opportunity in 2024.

Source: https://www.masangroup.com/vi/news/invest-in-vietnam/With-abundant-liquidity-Masan-stock-is-a-quality-investment-in-2024.html