With $7.4 bln valuation, Masan Group ranked among Top 50 listed companies in Vietnam

Khanh Minh Wednesday | 01/19/2022 10:54

Mr. Michael H. Nguyen - Deputy General Director of Masan Group receives the award. Photo: Masan

Masan Group has been named among the Top 50 Listed Companies in Vietnam by Nhip Cau Dau Tu Magazine.

The private conglomerate was listed among the "50 Most Effective Business Companies in Vietnam 2021" and one of 22 "Billion Dollar Vietnamese Company" in the TOP 50 list.

The TOP 50 list is evaluated based on measuring the business results of companies for 3 consecutive years, based on 3 growth indicators: revenue, return on equity (ROE), and return on share.

Despite pandemic, Masan Group and its subsidiaries made it into many reputable rankings and won prestigious local and international awards, underlining the outstanding business results and sustainable development strategies of one of the largest private conglomerates in the country.

Masan was among 22 billion-dollar businesses listed in the ranking. Remarkably, nearly 70% of them are private enterprises. The company’s market capitalization reached $7.4 billion while its reputation reached beyond the borders.

Customers shop at WinMart+ stores in the form of franchising in Bac Giang
Customers shop at WinMart+ stores, a form of franchising in Bac Giang. Photo: Masan

Attracting foreign capital inflows

In the past year, Masan is among the companies that had a strategy to attract capital from foreign investors thanks to growth. In the first 11 months of 2021, Vietnam's total retail sales of consumer goods and services reached VND 4,128 trillion. 

Experts predict that if it continues to maintain the high growth rate as in the past years, in the next 2 years, the country's retail market may reach $200 billion.

The GDP per capita of $3,000 is bringing about 1 million people into the middle class each year. They will become the driving force for the new purchasing power of the consumer retail industry. 

Masan Group has deployed Point of Life retail consumer ecosystem to exploit the potential. The Group has continuously conducted M&A deals, invest in new innovations, and cooperate with the world's leading corporations. 

In May 2021, a group of investors including Alibaba and Baring Private Equity Asia invested $400 million in The CrownX, a subsidiary of Masan. The CrownX was formed from two leading consumer goods businesses in Vietnam - Masan Consumer Holdings and WinCommerce. 

The CrownX cooperated with Lazada to accelerate the digital transformation process and accelerate the development of the integrated retail market from offline to online in Vietnam. 

In November 2021, SK Group acquired shares of The CrownX with $340 million. This deal not only shows the attractiveness of Vietnam's consumer-retail market but also affirms the effectiveness of the Point of Life strategy of Masan. The group continued to attract $350 million from a group of foreign investors including TPG, the Abu Dhabi National Investment Fund (ADIA), and the SeaTown Master Fund.

Customers shop at WinMart+. Photo: Masan
Customers shop at WinMart+. Photo: Masan

Building consumption ecosystem 

With nearly 2,500 stores and a close relationship with nearly 300,000 traditional grocers across the country, Masan has the potential to accelerate the volume of goods sold through the online channel. 

Due to the impact of the COVID-19 pandemic, Vietnamese consumers prefer online platforms for shopping. To serve nearly 15 million consumers who are knowledgeable and regularly use digital services, Masan has expanded into the telecommunications sector with the acquisition of 70% of Mobicast shares. 

This is the first step for Masan to digitize the "Point of Life" consumer ecosystem and bring an integrated product and service experience from offline to online.

By corporating with Reddi's customer database, Masan will build a cross-cutting integration platform to deliver outstanding value to consumers. Masan plans to build an effective model to serve 30-50 million customers, helping consumers save 5-10% of spending on essential goods and services in the next 5 years.

Masan's share was traded at VND146,000 ($6.4) on January 19. HSBC Research has placed a target price for MSN ticker is at $8.81.

The report shows valuations for each business segment of Masan based on its forecast business results in the upcoming years as well as the comparison with regional peers. WinCommerce is valued at $3.22 billion while Masan Consumer is valued at $7.18 billion.

The listed segments like Masan MEATLife, Masan High-tech Materials, and Techcombank are evaluated based on the market price of its stocks. Meanwhile, new investment segments such as Reddi and Phuc Long are evaluated based on future revenue expectations.

► Vietnam’s largest modern retail system officially renamed WinMart

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