Masan Consumer ranks in Top 10 by market capitalization as stock price skyrockets

Masan Consumer, the consumer goods arm of Masan Group, has seen its stock price soar more than 240% in the year to date.

The price rose to about VND228,000 ($8.98) apiece on Thursday, propelling the company into the Top 10 by market capitalization in the Vietnamese stock market.

The development also makes Masan Consumer the only FMCG (fast-moving consumer goods) company to rank among Vietnam's top 10 listed firms by market cap, alongside major players from banking and real estate sectors like VCB of Vietcombank, BID of BIDV bank, and VHM of property giant Vinhomes.

Amid a volatile market, MCH, the ticker of Masan Consumer on the Unlisted Public Companies Market (UPCoM), has still drawn significant foreign investor interest, with net purchases totaling nearly VND247 billion ($9.73 million) in a trading session in November.

Growth drivers from “premiumization” and “go global” strategies

Masan Consumer’s robust growth is primarily driven by its premiumization strategy and efforts to expand internationally.

With deep connections with over 340,000 traditional retail partners, 6,000 modern trade outlets, and five strong brands generating over VND2 trillion ($78.75 million) in annual revenue, it has successfully penetrated nearly every corner of the Vietnamese market, serving 98% of the country's households.

In the first three quarters of 2024, Masan Consumer reported impressive double-digit growth in both revenue and profit. Notably, its after-tax profit for Q3 and the first nine months of the year increased by 14.5% and 13.8% to VND2.07 trillion and VND5.5 trillion ($216.56 million), respectively.

The company's premiumization strategy has particularly boosted its large-scale categories like seasonings and convenience foods. For example, sales of the high-end Omachi brand rose by 24% in Q3, accounting for nearly 50% of the total revenue from the convenience foods segment.

This reflects a growing trend among Vietnamese consumers towards premium products, according to the firm’s leadership.

Going beyond the domestic market, the company has significantly ramped up its "Go Global" strategy. On December 4, the company signed a strategic partnership with private carrier Vietjet Air to offer CHIN-SU Pho Story on domestic and international flights, contributing to promoting Vietnamese culture to the world.

Passengers can now enjoy CHIN-SU Pho Story, made with a traditional 70-year-old recipe from Pho Thin Bo Ho, on flights to destinations such as Australia, India, China, Japan, and South Korea.

In November 2024, CHIN-SU further expanded its global presence by showcasing the company's products on giant billboards in major international locations, including Myeongdong in Seoul, South Korea and Dotonbori in Osaka, Japan.

Furthermore, CHIN-SU’s products, including fish sauce and chili sauces, have been successfully introduced to international markets like the U.S., Canada, Australia, and Europe, with the brand’s chili sauce even ranking in the Top 10 Best Sellers on Amazon.

Aiming for HoSE listing in 2025

According to a recent report by HSBC, Masan Consumer has demonstrated strong profitability, stable revenue growth, and a performance that significantly outpaces its peers in the FMCG and packaged food sector across the region.

From 2017 to 2023, the company achieved a growth 2.2 times higher than the overall market.

As part of its future strategy, it plans to list on the HoSE in 2025. HSBC noted that this move could improve liquidity for the company’s stock, aligning with its strong business performance and growth potential. This potential is grounded in Masan Consumer’s stable business record, with robust growth as compared to other companies in the same industry.

Experts believed that foreign investors seeking to tap into the promising FMCG sector will find Masan Consumer’s stock a compelling long-term investment, especially given its stable earnings, high growth rate, and strong dividend payouts.

Several large investment funds already hold significant stakes in Masan Consumer, including Albizia ASEAN Tenggara Fund (3.8 million shares), Vietcap Securities (2.7 million shares), and Bill & Melinda Gates Foundation Trust (over 1.04 million shares).

The successful HoSE listing is expected to boost the valuation of stocks in the Masan ecosystem, including MCH and MSN of parent firm Masan Group, they said.

At Thursday’s close, MCH stood at VND228,000 ($8.98) and MSN at VND73,700 ($2.9) per share.