Billionaire Nguyen Dang Quang: "The sweetest fruit lies at the end of the road..."

At the annual general meeting of Masan Group (stock code: MSN) on the morning of April 28, an investor asked what message the Board of Directors had so that shareholders could feel secure in holding MSN shares for the long term. Sharing with investors, Chairman of the Board of Directors of Masan Nguyen Dang Quang answered briefly, "The sweetest fruit is at the end of the road, where to go is up to you, the shareholders, to decide."

Billionaire Quang added that the group always identifies its mission with the consumer industry and consumers. The Masan boss believes that Vietnam is a young country with low per capita income, so Masan still has many opportunities and is created by the company itself. Shareholders will be rewarded when the company's revenue, profit, and growth reach high values.

Masan Chairman Nguyen Dang Quang speaks at the annual general meeting on April 28 (Photo: MSN).

This year, Masan targets consolidated net revenue of VND90,000 to VND100,000 billion, a record in the company's history. Estimated after-tax profit will decrease slightly, ranging from VND6,900 to VND8,500 billion. Masan said that the company still saw profit growth from its core business because last year it generated a sudden profit from the sale of its animal feed division.

In Masan's plan, The Crown X, the company that manages two main business segments including fast-moving consumer goods (Masan Consumer Holdings) and retail (WinCommerce), still plays a key role. This year, The Crown X's revenue is expected to reach VND68,000 - 76,000 billion, accounting for 75% of the group's total revenue.

In particular, WinCommerce alone is expected to reach sales of VND 40,000 billion, an increase of nearly 30% over the same period in 2021. Masan Group General Director Danny Le said that the group's trump card is the mini-mall model when a WinMart+ mini supermarket will integrate financial services, tea and coffee, telecommunications, and pharmaceuticals in addition to the main activity of selling food and groceries.

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Chart: Viet Duc.

The new integrated stores tested recorded an average increase of 30% in revenue, resulting in a 45% reduction in revenue to reach the break-even point, helping WinCommerce improve its profit margin. According to Mr. Danny Le, the group aims to convert 50% of WinMart+ stores to the new integrated model in the short term.

Also at the annual meeting, billionaire Nguyen Dang Quang announced that the group has just completed an investment agreement of 65 million USD to buy 25% of the shares of Trusting Social Joint Stock Company. Thus, Masan valued this technology company at 260 million USD. Masan's leaders said that the investment in Trusting Social helps the group accelerate the process of transforming the integrated consumer-technology ecosystem from offline to online.

Trusting Social is a fintech startup that uses artificial intelligence (AI) and machine learning to provide in-depth credit data from over 1 billion users to over 170 financial institutions across Vietnam, Indonesia, India and the Philippines. Prior to Masan's investment, Trusting Social received investments from many funds such as Sequoia Capital, BEENEXT, Tanglin Ventures, 500 Startups, Kima Ventures, Genesis Alternative Ventures.

According to the CEO of Masan, after the investment in fintech company Trusting Social, the group will increase the application of technologies such as artificial intelligence and machine learning to increase the success rate of new stores, reach break-even points faster, and develop financial services for people without bank accounts.

Sharing more specifically about the story of expanding the WinMart+ retail network with shareholders, The Crown X General Director Truong Cong Thang said that the key to dominating the market is that the company must open new supermarkets quickly and ensure that at least 90% of new stores are successful.

"We cannot wander around Vietnam, looking for every street corner and intersection and predicting where to open a store. The power of technology will be a tool to help us expand quickly and accurately. We will know exactly which location is optimal in terms of traffic and purchasing power for the new store to be successful," Mr. Thang shared with Masan investors.

Masan aims to expand itself to 10,000 mini supermarkets and develop 20,000 franchise stores by 2025. The group also said it is ready and has actually closed ineffective and unprofitable points of sale.

Source: https://dantri.com.vn/kinh-doanh/ty-phu-nguyen-dang-quang-trai-ngot-nhat-nam-o-cuoi-con-duong-20220428165718256.htm