MSN - Profits is forecast to improve since 2H2023
- Q2 2023, MSN illustrated a resilience sale with VND18,609 bn (-0.5% QoQ; +4.3% YoY) despite of challenging business environment. The backbone of the resilience is the healthy performance of the consumer-based businesses. Q2 2023 NPAT-MI dropped to the lowest level in the last twelve quarters with VND105 bn (-51.2% QoQ; -89.3% YoY). The key reason is the surge of non-operating expenses (including interest expenses, tax, and minority interest).
- We calculated that MSN ‘s net profit will improve since 2H2023. The primary catalyst is the decrease of the interest expenses. We forecast the 2023 sales and NPAT-MI to reach VND78,320 bn (+2.8% YoY) and VND1,228 bn (-65.6% YoY), equivalent to 2023 EPS of VND863 (-65.6% YoY). Compared to our previous forecast, we downgraded the NPAT-MI by 10% because MSN reported a higher tax rate and higher minority interest rate in 1H2023.
- Based on SOTP valuation method and our new forecast, our new target price for MSN shares is VND95,700. In the viewpoint that 1) MSN will succeed in exploiting growth opportunities of the consumer sector in the long-term; and 2) the profit will improve since 2H2023, we have a BUY recommendation on this stock for the long term
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.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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