MSN – Valuation becomes attractive
- In Q4 2022, Masan Group (HSX: MSN) posted net sales and NPAT-MI of VND20,643 bn (+5.7% QoQ; -13.4% YoY) and VND447 bn (-17.7% QoQ; -93.1% YoY), respectively. Amid a challenging macro envinronment, the positive quartely growth, which was driven by MCH, MML and MHT, is an outstanding performance compared to other consumer giants.
- To sum up, 2022 net sales and NPAT-MI of MSN were VND76,189 bn (-14% YoY) and VND3,567 bn (-58.3% YoY), respectively. Notably, we found some warning signals from the downward trend of MHT ‘s gross margin between Q4 2021 and Q4 2022. We believe that the advantage of rising Vonfram prices is disappearing because China re-opened, resulting in lower MHT’s expected gross margin.
- We expect that 2023 revenue will maintain a modest positive growth, supported by the growth of consumer-based businesses. However, the bottom-line is predicted to drop by double-digit rate due to heavy interest expenses. Consequently, 2023 sales and NPAT-MI is predicted to be VND81,902 bn (+7.4% YoY) and 2,451 bn (-31.3% YoY), respectively. 2023 EPS is calculated at VND2,088 (-16.8% YoY).
- Because our forecast does not change, based on SoTP valuation, we maintain a target price of VND101,400 per share, compared to our previous target price in Jan-2023. We recommend to BUY MSN shares for long-term investment with the 12-months total expected return of +28.7% compared to the closing price of VND78,800 on Mar 29th 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.
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.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.