FREE

MCM – 2024 performance is expected to show continued positive growth

• 2023 net sales and net profit reached VND3,135 bn (or USD131 mn; +0.1% YoY) and VND374 bn (or USD16 mn; +8% YoY), respectively. The abundant interest income is the growth driver of the bottom-line. This result met 91% of 2023 revenue target but exceeded 2023 net profit target by 3%.
• We believe that sales growth will be the backbone of MCM‘s 2024 performance. The two main pillars of the top-line are (1) Larger distribution network; and (2) Rebranding project. Along with the cost optimization abilities, we predict that net profit will grow at the same pace as the revenue. MCM‘s 2024 net sales and net profit are forecast to reach VND3,286 bn (or USD137 mn, +4.8% YoY) and VND397 bn (or USD17 mn, +6.1% YoY), respectively. The equivalent EPS is VND3,610.
• MCM stock is trading at trailing P/E of 15.x - higher than MCM ‘s 3Y-Average P/E (13.7x). We believe that positive expectations about MCM's growth have been partly reflected in the stock’s price movement. However, MCM also pays a regular annual cash dividend (VND2,000/share). Therefore, we suggest investors interested in MCM stock to wait for the right buying point to make profitable