After a period of accumulation, Masan Group’s stock MSN suddenly exploded and became the leading driver of VN-Index’s increase in the 5/3 session.
In detail, after 15 months of trading, MSN stock continued to record a session of maximum amplitude to reach 75,700 VND/share. This is also the highest price of this stock in over 5 months, since the beginning of October 2023.
Not only breaking through in terms of points, but the money flow also surged into MSN stock. The liquidity matched in the 5/3 session reached nearly 13 million shares, triple the average and also the highest level in MSN’s listing history.
The accelerating growth of MSN stock pushed the market capitalization of the retail consumer corporation owned by billionaire Nguyen Dang Quang to over 108,000 billion VND, equivalent to 4.3 billion USD. This is also the capitalization level that Masan has missed multiple times, as each time it approaches the 100,000 billion VND mark, the MSN stock price faces adjustment pressure.
The recovery of MSN stock helped the assets of billionaire Nguyen Dang Quang increase significantly. According to the update from the world billionaire rankings of Forbes Magazine as of February 24th, Mr. Nguyen Dang Quang, Chairman of Masan Group (HoSE: MSN) has returned to the list of USD billionaires with assets of 1 billion USD.
In the past few months, the Chairman of Masan Group has continuously disappeared and then returned to Forbes’ rankings due to the fluctuations of MSN stock. Most recently, on January 16th, he was removed from the list after only returning to the billionaire rankings for 13 days.
With stable inflation, the state flexibly applies monetary and fiscal policies to optimize GDP growth, promote domestic consumption, and stimulate economic growth as at present, many expect that retail consumer companies such as Masan will benefit significantly.
In 2023, MSN achieved a revenue of 78,252 billion VND, a nearly 3% increase compared to 2022. However, the after-tax profit only reached 1,870 billion VND, a decrease of over 60%.
In 2024, Masan Group is expected to achieve a consolidated net revenue ranging from 84,000 to 90,000 billion VND, with growth rates of 7% and 15% respectively compared to the same period. Especially, the company aims for a profit ranging from 2,290 billion VND to 4,020 billion VND. In the positive scenario, Masan’s profit will grow strongly, double the 1,950 billion VND figure of 2023.
BSC Research forecasts that the core consumer sector, including Masan Consumer and WinCommerce, will gradually move towards effectiveness, with the compound annual growth rate (CAGR) of pre-tax profit and interest expense (EBIT) in the 2023-2025 period reaching 20.8%, compared to only 9% in the 2021-2023 period.
At the same time, there is an expectation of the recovery in consumer demand and the decrease in interest costs. In addition, Masan is also divesting non-core business areas to focus on core operations, as well as planning the IPO of The CrownX (the unit that owns Masan Consumer and VinCommerce) in the medium term. The divestment of non-core businesses and the plan to IPO The CrownX will be a story that supports profit as well as the stock price in the coming time.
BVSC Research also believes that the most difficult period of financial pressure for Masan has passed and the company’s profit will recover strongly thanks to the stability of the core consumer business areas and the reduction of interest costs, which will create positive momentum for the stock price in 2024. BVSC also highlights that MSN stock, alongside some other blue-chips, may attract capital inflows in the upcoming stock market upgrade of Vietnam.
