Vietnam’s oldest dairy firm Moc Chau okayed to list shares on main bourse

Moc Chau Dairy Cow Breed JSC, popularly known as Moc Chau Milk, has received approval from the Ho Chi Minh Stock Exchange (HoSE) to float 110 million shares on the bourse.

The approval was given last Friday, after the firm filed an application in September 2023.

Moc Chau Milk started trading on the Unlisted Public Company Market (UPCom) as MCM in December 2020.

MCM closed on Tuesday at the upper band of VND50,000 ($1.96) apiece, with 2.34 million shares changing hands. At this price, the firm has a market cap of VND5.5 trillion ($216 million).

Vietnam Livestock Corporation JSC, or Vilico (UPCoM: VLC) now controls a 59.3% stake in Moc Chau Milk, while Vietnam Dairy Products JSC, aka Vinamilk (HoSE: VNM), holds 8.85%. Vinamilk owns nearly 69% in Vilico.

Mai Kieu Lien, CEO of Vinamilk, the largest dairy firm in Vietnam by market value, is chairperson of Moc Chau Milk.

Established in 1958 under the army, Moc Chau Milk produces fresh milk, yogurt, and other dairy products. Researchers with brokerage house SSI have estimated that Moc Chau Milk commands a 2.7% share of Vietnam’s dairy market.

Moc Chau Milk earned a net profit of VND374.42 billion ($17.7 million) on revenue of VND3,135.4 billion last year, up 8% and 0.1% year-on-year, respectively.

In Q1/2024, the dairy firm made a net profit of VND49.95 billion ($1.96 million) on revenue of VND625.4 billion, down 50.7% and 14.8% year-on-year, respectively. Its total assets stood at VND2,605.3 billion ($102.3 million) at end-March, unchanged from end-2023.

For this year, Moc Chau Milk is aiming for a net profit of VND332 billion ($13 million) and revenue of VND3,367 billion, down 11% but up 7% from 2023, respectively.