MSN – Lower-than-expected consumption puts more pressure on 2023 performance
- In Q1 2023, Masan Group (HSX: MSN) posted net sales and NPAT-MI of VND18,706 bn (-9.3% QoQ; +2.8% YoY) and VND215 bn (-73.3% QoQ; -86.5% YoY), respectively. The high double-digit negative growth of the bottom-line is due to higher SG&A/Sales ratio; lower profit contribution of Techcombank; and the surge of interest expenses.
- Because Q1 2023 was strongly lower than our forecast, we adjust down the 2023 performance prediction. The 2023 revenue, NPAT Pre-MI and NPAT-MI are predicted to be VND78,348 bn (+2.8% YoY), VND2,413 bn (-49.2% YoY) and VND1,372 bn (-61.5% YoY), respectively. The equivalent EPS will be VND963 (-61.5% YoY).
- Based on SoTP valuation, we downgrade MSN ‘s target price to VND85,000 per share from VND101,400 per share of our previous forecast in Mar-2023. We recommend to ACCUMULATE MSN shares for long-term investment with the 12-months total expected return of +14.7% compared to the closing price of VND74,100 on May 08th 2023.
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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