 |
“National stocks” is a term used in the investment community to refer to shares that are widely known, highly popular, and closely followed or traded by both individual and institutional investors.
After a few quiet years, Vietnam’s stock market has become more robust with increasing liquidity and market index points, fuelled by a wave of IPOs and listings from numerous large enterprises. Masan Consumer’s MCH shares are one of the most anticipated listings.
Michael Hung Nguyen, deputy CEO of Masan Group (HoSE: MSN), stated, “Masan Consumer's plan to move its shares from the Unlisted Public Company Market (UpCom) to HoSE was approved earlier this year by both the group and its shareholders. We are stepping up the plan and expect MCH to meet the criteria for inclusion on the VN30-Index.”
The change to HoSE has been much anticipated, given that HoSE has long lacked new heavyweight names in the essential consumer goods sector. Icons once dubbed “national stocks”, such as Vinamilk (VNM) or Sabeco, have experienced stagnant growth, and share prices are on a downward trend.
Founded in 1996, Masan Consumer, a subsidiary of Masan Group, is one of Vietnam’s leading fast-moving consumer goods (FMCG) companies. Masan Consumer is popular for billion-dollar brands such as CHIN-SU, Omachi, Nam Ngư, Kokomi, and Wake Up 247, along with seasonings, convenient foods, and beverages.
Each of these leading brands generates hundreds of millions of dollars in annual revenue for Masan Consumer while revolutionising Vietnam’s consumer goods industry. Masan Consumer’s products are now present in 98 per cent of Vietnamese households. The company is also the market leader in fish sauce with a 68.8 per cent market share, chilli sauce with 67 per cent, and soy sauce with 52.9 per cent. It boasts a nationwide distribution network of 313,000 points of sale in general trade and 8,500 points of sale in modern trade.
Leveraging production plants certified under international standards, Masan Consumer has become more proactive in research, production, and quality control amid increasing consumer demand for quality, and rapid shifts in consumer tastes.
As part of the ecosystem featuring the WinMart and WinMart+ retail chains, Masan Consumer has access to important distribution channels and takes advantage of their customer data. Customer data from these modern retail chains can serve as invaluable input for Masan Consumer to analyse and fine-tune product formulas, packaging, pricing, and even taste preferences to closely match the changes of modern Vietnamese shoppers. Test products are also closer to consumer needs, thereby shortening innovation time.
 |
There are very few Vietnamese enterprises that can form a comprehensive value change like Masan Consumer. Another unique selling point is Masan Consumer’s development strategy. Unlike many large corporations expanding their product portfolio horizontally, Masan Consumer adopts a "Fewer – Bigger – Faster" strategy, focusing on high-performing products and eliminating underperforming stock keeping units (SKUs), focusing on fewer products but delivering larger quantities at faster deployment speeds.
Masan Consumer embraces a “Less is More” philosophy because statistics show that approximately 20 per cent of top SKUs contribute 80 per cent of total revenue. Thus, the company focuses on high-performing products while eliminating underperforming SKUs.
The strategy of streamlining offerings not only fuels rapid growth but also maintains strong profitability for Masan Consumer through all economic cycles. Between 2017 and 2024, Masan Consumer’s net profit rose steadily from VND2.25 trillion ($85.5 million) to VND7.92 trillion ($301 million).
New national stock
Among economic sectors, essential consumer goods stand out as a highly defensive industry. Investors view the sector as less vulnerable to fluctuations in both the stock market and the broader economy than most other sectors. This unique appeal explains why investors assign higher valuations to shares in this sector compared to those in other industries.
On that basis, the shares of any essential consumer goods company that maintains strong growth over the years and possesses a clear competitive advantage will be highly sought after by investors. They meet dual criterion: being both a defensive stock and a growth stock. Vinamilk’s VNM earned its “national stock” title precisely for this reason. Everyone wants to own a stock that offers both steady, high dividends and rapid growth year after year.
Masan Consumer has sustained long-term profit growth and is also among the most generous dividend payers to shareholders. For many consecutive years, the company has paid cash dividends of around VND4,500 ($0.17) per share, even when MCH’s price was only a few tens of thousands of VND per share.
Notably, in 2023 and 2024, total cash dividends reached VND36,300 ($1.38) per share. For many long-term investors, the dividend payments in 2023-2024 alone will nearly recover the investment capital, not to mention the benefits from the increase in stock price.
Masan Consumer’s MCH shares are well on their way to becoming a new representative of Vietnam’s essential consumer goods industry on HoSE and perhaps the country’s next “national stock”.
