The MCM shares of Moc Chau Milk, a leading Vietnamese dairy company, surged by 12.05% to VND 43,700/share on May 27, 2024. This surge in share price followed the Ho Chi Minh City Stock Exchange’s approval to list 110 million MCM shares with a par value of VND 10,000/share. The trading session also witnessed a significant spike in trading volume, climbing to nearly 280,000 units.
Moc Chau Milk, formerly known as Moc Chau Army Farm, was established in 1958 and is Vietnam’s oldest dairy brand. The company has a market capitalization of over VND 4,800 billion as of the May 27, 2024, trading session. Moc Chau Milk is now a subsidiary of Vinamilk, with the latter holding a direct stake of 8.85% and an additional 59.3% through Vilico.
Since its acquisition by Vinamilk in early 2020, Moc Chau Milk has experienced positive growth in its business results. In 2023, the company recorded a revenue of VND 3,135 billion, unchanged from 2022, but witnessed an impressive 8% increase in post-tax profits, reaching a record high of VND 374 billion.
However, in Q1 2024, Moc Chau Milk’s revenue dipped by 15% year-on-year to VND 625 billion, and its net profit halved to nearly VND 50 billion, the lowest in three years. The company’s management attributed this decline to economic challenges and weak consumer demand. Additionally, financial income was impacted by declining deposit interest rates.
Looking ahead, Moc Chau Milk’s shareholders have approved ambitious plans for 2024, targeting a record-high revenue of VND 3,367 billion and a post-tax profit of nearly VND 332 billion. To achieve these goals, the company intends to expand its distribution network in Northern Vietnam, leveraging Vinamilk’s extensive network of 200,000 sales points. Moc Chau Milk is also planning a brand repositioning project for mid-to-late 2024, aiming to attract more customers and boost the brand’s appeal.
Moc Chau Milk’s leadership team, including Vinamilk’s CEO and Moc Chau Milk’s Chairman, Mai Kieu Lien, is confident in the company’s prospects. With improved infrastructure, the company plans to open more self-operated dairy stores and optimize costs. These strategies, coupled with the brand repositioning project, are expected to drive revenue and profit growth in 2024.
