·      Q2 2023 sales and net profit reached VND790 bn (+7.6% QoQ; -5.8% YoY) and VND93 bn (-7.9% QoQ; +3.3% YoY), respectively. Weaker-than-last year sales is the tendency for the industry under rising inflation. Higher raw milk cost is compensated by healthy financial income, resulting in positive profit growth.

·      We believe that the flat growth of MCM ‘s 1H2023 sales is a premise for higher sales growth in 2H2023 when the economy is expected to recover. The higher COGS could be compensated by higher financial income. As a result, MCM ‘s net profit will grow at a higher rate than revenue in 2023.  

·      The stock price has decreased at a modest rate (-2.5%) since the beginning of 2023, equivalent to a trailing P/E of 13.7x. We suppose that the flattening trend of sales is the reason affecting the stock price. Therefore, on the expectation of higher sales and positive net profit growth in 2H2023, the stock price should be go up.