MSN – Higher-year ago level of income from JVs pushed the bottom-line up in 9M2022
- In Q3 2022, Masan Group (HSX: MSN) posted net sales of VND19,523 bn (+9.5% QoQ; -17.3% YoY). The strong negative YoY growth is due to the deconsolidation of the feed segment. In detail, Q3 2022 excluded-feed sales growth was –2.1% YoY, driven by lower revenue from WCM.
- We expect that 2022 core revenue of MSN will show a positive growth despite of rising inflation, supported by double-digit growth of MHT and modest growth of consumer segments (MCH, MML). However, we predict that 2022 bottom-line will decrease, in the pillar of, 1) rising agriculture commodity costs; and 2) higher SG&A expenses.
- Based on SoTP valuation, we evaluate MSN at VND 101,400 per share. We recommend to ACCUMULATE on MSN shares with the 12-months total expected return of +9.5% compared to closing price of VND92,600 on Dec 27th 2022.
Masan Group Corporation is a Vietnam-based company engaged in the food processing industry. It is a private sector company whose businesses include Masan Consumer, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and Masan Resources. It is engaged in the processing and trading of fish sauce, soya sauce, chili sauce and other condiments, as well as instant noodles, through its subsidiary, Masan Consumer Corporation. It is also involved in mining business through its subsidiary Masan Resources, which owns 100% interest in Nui Phao polymetallic project and produces tungsten, fluorspar and bismuth. Through other subsidiaries, The Company is active in other fields, such as the manufacture of animal feeds and the provision of management advisory services.
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