Profits Surge for MSN in Q2, Mining Sector Turns a Profit

25 June, 2025

Mineral segment swims upstream with higher prices

A notable aspect of Masan’s 2025 profit outlook is its mineral segment, specifically Masan High-Tech Materials JSC (UPCoM: MSR), which operates the Nui Phao tungsten mine. According to Vietcap Securities, the selling price of APT, the primary raw material in tungsten products, has increased by 10% to 450-470 USD/MTU, the highest in 13 years.

APT is an essential input for tungsten products, accounting for about 30-40% of the revenue in this segment, with a gross profit margin of 25-30%. In Q1, MSR‘s profit margin improved by 2.6 percentage points compared to the previous quarter and is expected to continue improving in Q2 and Q3 due to higher selling prices.

Not only does Masan’s mineral segment benefit from rising commodity prices, but it is also considered to have a lower cyclicality compared to many other natural resource industries. This is due to its positioning of high-tech products used in aviation, electronics, and renewable energy. Amid the prolonged US-China trade tensions, the need to secure strategic mineral supply chains in developed countries has been prioritized, indirectly creating an advantage for MSR.

According to information from Masan, MSR turned profitable in Q2. In addition, in its latest update, Vietcap forecast that MSR will contribute about 6.5% of Masan’s total operating profit in 2025, indicating a significant improvement compared to the previous loss-making period.

Going back to the 2025 Annual General Meeting of Shareholders, in response to a shareholder’s question about when MSR would become profitable, General Director Ashley McAleese stated that future revenue would improve due to increasing demand and cost-cutting measures. There have been signs of increasing EBITDA, albeit small but significant.

“The price of APT in the world market has increased significantly. For every $5 increase, the Company’s revenue increases by $1.5 million. Therefore, 2025 revenue is definitely expected to be better than last year” – MSR‘s General Director remarked.

After selling H.C. Starck Holding (Germany) GmbH (HCS) last year, MSR focused on efficiently operating the raw material processing segment to take advantage of its ownership of a mine with large reserves. The company also stated that it has passed the stage of mining low-grade ores, which required high operating costs.

MSR’s General Director Ashley McAleese (left) shared at the meeting

Positive business results from the consumer-retail ecosystem

According to the company’s estimates, Masan’s net profit in Q2 is expected to reach approximately VND 1,500 billion, up nearly 60% over the same period last year. This is the third consecutive quarter that the Group has recorded positive profit growth, indicating the effectiveness of the operational restructuring and cost optimization process.

The consumer-retail ecosystem, including member units such as WinCommerce (WCM), Masan Consumer (MCH), and Masan MEATLife (MML), continues to be the main driver of this growth. WCM maintained a significant expansion pace with 257 new stores opened in the first five months, reaching 40% of the full-year plan. May revenue increased by 18%, with WinMart+ in rural areas surging by 37%, indicating significant growth potential in this segment.

In Q2, MCH accelerated its premium strategy, notably with the “Quan Xa Chau A” product line under the Omachi brand. At the recent Annual General Meeting of Shareholders, shareholders approved a maximum interim dividend payout of 60% (VND 6,000/share) for 2025. Previously, MCH paid dividends for 2024 at a rate of 95% (VND 9,500/share), equivalent to a total value of more than VND 6,884 billion, a relatively large payout compared to the industry average.

As for MML, which accounts for over 50% of the market share of animal protein in the WCM system, it is expected to benefit from a shift in consumer behavior towards convenient and safe products.

Many opportunities but also challenges

While the positive profit outlook is undeniable, Masan also faces some challenges. These include increasing competition in the FMCG and modern retail sectors, especially from foreign brands and e-commerce models. Domestic consumption recovery has been uneven, and consumers still tend to save amid global economic uncertainties. Expansion costs for the retail system and brand investment may affect profit margins if not carefully managed.

However, with 51% of the year’s profit plan achieved in the first half under the base case scenario, the Group demonstrates good governance and operational optimization. The Group has all the elements to maintain its growth momentum in 2025, including an efficiently operating consumer ecosystem, supportive macroeconomic policies, and, notably, the mineral segment, which was previously undervalued but has now regained its position due to higher output prices. Despite some challenges ahead, with prudent management and a well-planned expansion strategy, Masan remains an interesting name on the Vietnamese stock market this year.

In 2025, Masan’s consolidated business plan had many bright spots. Depending on internal approvals, macroeconomic conditions, and the recovery of the consumer market, net revenue is expected to range from VND 80,500 to 85,500 billion, corresponding to LFL growth of 7-14% year-on-year after adjustments, as HCS is no longer consolidated. Consolidated revenue, excluding MSR, is estimated at VND 74,013-78,013 billion, up 8-13%.

The Group expects net profit to reach VND 4,875-6,500 billion, up 14-52% compared to the realized profit of VND 4,272 billion in 2024.

Huy Khai

– 09:00 25/06/2025