Doubling from VND89,200 on January 2, Masan Consumer Goods Corporation (MCH) shares reached VND181,000/share (closing price on May 23), corresponding to a "huge" capitalization of more than VND128,000 billion.
Owning “big brands”
At the end of the session on May 23, the stock code MCH continued to show a green candle with a closing price of 181,000 VND. Thus, after less than the first half of 2024, MCH had an impressive increase from 89,200 VND on January 2. This price increase helped MCH become the center of attention on the UpCOM floor, both in terms of price and trading volume.
The reason for MCH's price increase may come from recent positive information, including business results and the ability to raise more capital, IPO on HoSE that the company's leaders just announced at the 2024 Shareholders' Meeting.
Accordingly, MCH owns 5 “big brands” of consumer goods with sales of about 150-250 million USD and large “coverage”. These are brands that have become familiar to millions of Vietnamese people such as CHIN-SU, Nam Ngu, Omachi, Kokomi and Wake-Up 247, accounting for 80% of MCH’s revenue in the domestic market in the past 7 years. With a growth rate 2.2 times higher than the general market rate from 2017 to 2023, more than 98% of Vietnamese households own at least one MCH product.
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| Chin-su chili sauce products are beautifully displayed at the Japan Foodex event. |
In addition, the first quarter business results show that MCH is still on a steady growth path this year with revenue increasing by 7.4% compared to the same period in 2023, reaching VND6,727 billion. Masan Consumer's gross profit margin in the first quarter was high at 45.9%, up 400 basis points compared to the same period in 2023. The company's leaders also talked about the "Go Global" strategy for the international market, as well as developing different product lines to "cover" the domestic FMCG market, currently worth 32 billion USD from the current level of 8 billion USD.
Into the top large capitalization enterprises
With the strong price increase in recent times, based on the price of 181,000/share on May 23, MCH has a corresponding capitalization of more than 128,000 billion VND. This capitalization even exceeds MCH's "parent company", Masan Group Corporation (MSN), which is 111,702 billion VND, based on the stock price on the same day.
Although listed on the UpCOM floor, this capitalization has helped MCH enter the top of the largest capitalized enterprises on the stock exchange. MCH's current capitalization is higher than many "big caps" on the HoSE floor such as Sabeco (SAB), Military Bank (MBB), Mobile World (MWG), Vincom Retail (VRE) and is almost equal to the capitalization of Vinamilk (VNM).
It is known that MSN is currently the largest shareholder, holding 68.1% of MCH's shares, and is also the owner of many other member companies, all of which are famous brands in the consumer - retail ecosystem such as WinCommerce, Masan MEATLife, WinEco, Phuc Long Heritage, Masan High-Tech Materials... With a current capitalization lower than MCH and the ownership of other valuable assets, MSN's stock price does not fully reflect the intrinsic value of the enterprise.
In addition, the "family diamond" MCH has not been used here yet, this enterprise has many plans to continue its growth momentum.
Billion dollar brand and the journey of Vietnamese culinary ambassador
Masan Consumer has successfully built strong brands with annual revenue of 150 million to 250 million USD, contributing to 80% of total revenue growth. This enterprise is confidently planning to go out into the world on the journey of "Vietnamese culinary ambassador": "Every Vietnamese family, every Masan product. Every family in the world, at least one Masan product".
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| Many visitors at CHIN-SU booth. |
For example, CHIN-SU became a billion-dollar brand by premiumizing its brand, serving more than 65% of Vietnam's fish sauce consumption. Since 2007, the product has always improved the quality of fish sauce by improving flavor and packaging, while creating more value-added products, the brand has developed into a comprehensive and premium condiment category. The initial achievements of the "Go Global" journey - bringing Vietnamese cuisine to the world, targeting 8 billion global consumers, include CHIN-SU reaching the top 1 position on Korea's Coupang e-commerce platform, and the top 10 position on Amazon in 2023.
Omachi’s roadmap to becoming a billion-dollar brand is to premiumize the instant noodle experience from a “timely” food to a delicious, nutritious, and comforting meal. From 2017 to 2023, Omachi doubled the number of meals served to 544 million per year, demonstrating the unique appeal of the premium experience to consumers.
Accordingly, Omachi aims to expand its target market from 1 billion USD of Instant Noodles to 17 billion USD of Restaurant Meal Replacement (RMR) with the launch of Self-boiling Hot Pot in 2023 and Omachi Self-Cooking Rice in the near future.
In 2024, Masan Consumer expects net revenue to reach between VND32,500 billion and VND36,000 billion. In addition to its core products and businesses, the company is also developing innovative capabilities and processes to complete its FMCG portfolio in the future.
Source: https://baodautu.vn/tang-gia-100-tu-dau-nam-dong-luc-tiep-theo-cua-mch-la-gi-d216194.html
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