In a report released on Wednesday 7 July, Credit Suisse raised MNS’s forecast for earnings per share (EPS) in 2021 and 2022 to 38 and 5 percent, respectively. Credit Suisse also raised MSN's target price to VND137,000.
The report noted that the prospect of MSN stock is boosted by the recent omni-channel retail-consumer solutions launched by Masan Group, especially the cooperation deal with Alibaba-Baring and Lazada e-commerce platform.
Another company, Mirae Asset Vietnam Securities (MASVN), valued MSN shares at a target price of VND131,000. The valuation is based on Masan’s five business segments: Masan Consumer Holdings (MCH), Masan MEATLife (MML), Masan High-Tech Materials (MSR), Vin Commerce (VCM) and Techcombank (TCB).
According to MASVN, MSN's company value is about VND153,000 billion, based on the total value of Masan Group's business segments, less the amount debt at the parent company.
Previously on July 2, HCMC Securities Company (HSC), a brokerage company with the third largest market share on the Ho Chi Minh Stock Exchange (HOSE), updated MSN's new target price of VND134,000 per share with purchase recommendation. Ban Viet (VCSC) recommended a target price of VND142,500 per share.
Since the beginning of the year, Masan has carried out many M&A deals with investors pouring more than $800 million into its subsidiaries. Masan, on the other hand, spent $15 million buying 20 percent of Phuc Long, a Vietnam's tea and coffee chain, operating Phuc Long kiosk model at VinMart+ stores.
As of June, 50 VinMart+ stores have set up Phuc Long kiosks. Each day, this model is expected to generate VND5 million additional sales per day in which VCM has a 20 percent revenue sharing arrangement. Management forecasts 1,100 kiosks will be operational across VinMart+ locations by year end. The additional VND1 million revenue/day (20 percent of VND5 million per day per kiosk) is expected to enhance EBITDA margins by 4 percent for each VinMart+ store that has a Phuc Long Kiosk.
The VinMart system has achieved significant growth with the opening of 300-500 new stores this year. Masan plans to increase the number of VinMart+ stores and VinMart supermarkets to 3,000 points of sale.
In investment capital deal from Alibaba Group, The CrownX, Masan Group's retail arm, also cooperated with Lazada, the leading e-commerce platform in Southeast Asia of Alibaba Group, to promote the digital transformation process and integrated retail market from offline to online in Vietnam. VinCommerce will be the leading necessities retailer on the Lazada e-commerce platform, while VCM’s offline stores will be transformed into pick-up points for online orders.
A VinMart store. Photo by Masan.
Recently, VinMart has piloted a fast delivery service within four hours at 14 supermarkets in HCMC and Hanoi, applying to a list of nearly 2,000 products, including fresh products. The initial phase of the pilot phase has brought positive results.
Masan Consumer Holdings Company continues to achieve outstanding business results. MCH's revenue and profit grew at a double-digit rate in the first half of 2021.
According to the report of Viet Capital Securities, Masan MEATLife's integrated meat segment, along with the tungsten price (in Masan High-Tech Materials’ the high-tech industrial materials business) are performing well, raising the total after-tax profit forecast for the period 2021 - 2023 to 46 percent.
MSN's stock valuation is also supported by an associate company, Techcombank. Masan Group currently holds more than 20 perecent shares of this bank. As of the end of the trading session on July 5, TCB stock was at VND58,000 per share. Accordingly, Techcombank's capitalization has surpassed VND200,000 billion.