Masan Consumer Corporation (MSC) shines with its impressive performance, declaring a substantial dividend of 251,100 VND per share.
As per the announcement, this 2023 additional dividend can be paid in one or multiple installments within six months of the approval of the resolution at the Annual General Meeting of Shareholders. Notably, the MCH shares of MSC closed at 204,800 VND per share on August 29. With this anticipated dividend, the dividend yield on the share price stands at an attractive 8.2%, outpacing the interest rates offered by many banks.
Furthermore, in its latest report, HSC Securities has upgraded its target price for MCH shares to 251,100 VND, implying a potential return of approximately 22.5% compared to the closing price of 204,800 VND per share on August 29. HSC forecasts a net profit CAGR of 10% for MSC over the next three years (2023-2026). Despite a 50% surge in its share price over the past three months, MCH’s 2025 P/E ratio is 17.5 times, still 23% lower than the regional industry average of 22.7 times.
MSC, with its roots in the spice industry, has diversified into eight key consumer product categories in Vietnam and boasts five brands that each generate over 2,000 billion VND in revenue: CHIN-SU, KOKOMI, OMACHI, Nam Ngư, and Wakeup 247.
According to Kantar, more than 98% of Vietnamese households own at least one product from MSC. HSC’s report reveals that CHIN-SU and Nam Ngư are the most popular brands in urban areas, while rural areas favor Nam Ngư, CHIN-SU, KOKOMI, and Tam Thái Tử. MSC has cultivated a loyal customer base in both rural and urban areas, fostering a willingness to try new products and driving sales across multiple categories.
MSC is committed to investing in marketing and promotions while also emphasizing R&D to rapidly introduce new products to the market. Through its Consumer Innovation Center, MSC engages with its “Consumers in love” community to gather insights, identify unmet needs, and develop relevant products.
MSC has consistently achieved double-digit growth, as highlighted by Nguyen Dang Quang, Chairman of the Board of Directors of Masan, at the Masan Shareholders’ Meeting in April 2024. He proudly described Masan Consumer as a “family heirloom diamond” and a source of pride in their mission to serve consumers. MSC boasts high-profit margins, stable revenue growth, and significantly outperforms its regional peers in the FMCG and packaged food industries. It is the most valuable asset within the Masan Group’s consumer-retail ecosystem.
Guests eagerly experiencing Phở Story products at the 2024 Masan AGM
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MSC’s latest report showcases its continued momentum, building on its record-breaking performance in 2023. In the second quarter of 2024, MSC achieved a 14% growth in revenue while maintaining a robust gross profit margin of 46.3%. The convenience food, beverage, and coffee categories led the growth, with increases of 20.7%, 17.6%, and 16%, respectively, compared to the same period last year. Additionally, MSC’s Go Global strategy yielded positive results, with a 17% year-over-year increase in export revenue.
MSC’s growth trajectory is supported by its strong brands, including CHIN-SU, KOKOMI, OMACHI, WakeUp 247, and Nam Ngư, coupled with its premiumization strategy, which has allowed for higher selling prices in the convenience food category despite lower raw material costs.
From 2017 to 2023, MSC grew at a remarkable rate, outpacing the market by 2.2 times. A recent HSBC report underscores MSC’s high-profit margins, stable revenue growth, and superior performance compared to its regional peers in the FMCG and packaged food industries.
In 2023, the company set a new profit record, with a net profit of 7,195 billion VND, a 30% increase from 2022. The EPS for 2023 stood at 9,888 VND, a significant improvement from the 2022 figure of 7,612 VND. Moreover, MSC’s average ROE over the past five years is an impressive 32.9%, outperforming most other companies in the VN30 index.
Looking ahead to the second half of 2024, MSC intends to accelerate revenue growth by executing strategic initiatives, continuing its premiumization efforts, and optimizing its product portfolio by phasing out less efficient SKUs to maximize profits.
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