Masan Group maintains strong standing in “Vietnam’s 50 Best Performing Companies”

September 18, 2023 - 15:00
Masan Group achieved distinction in two notable categories, “Vietnam’s 50 Best Performing Companies” and "Billion Dollar Enterprise 2023," announced by Nhip Cau Dau Tu Magazine and Thien Viet Securities Company on September 16.
Masan Group achieved its 10th “Viet Nam’s 50 Best Performing Companies” recognition by Nhip Cau Dau Tu Magazine and Thien Viet Securities Company on September 16. — Photo courtesy of Masan Group.

The “Vietnam’s 50 Best-performing Companies” (TOP50) ranking, a prestigious and highly regarded annual assessment, is guided by the insights of leading economic and business experts from Harvard Business School.

The TOP50 ranking aims to identify and commend companies operating on the Vietnamese stock market that exhibit remarkable effectiveness and performance.

The ranking methodology involves a comprehensive assessment of company performance over a three-year period, focusing on three key growth indicators: revenue, return on equity (ROE), and return on shares.

Over the course of 12 successful years (2010-2023), TOP50 has consistently conducted surveys and rankings. The ranking 2023 announcement ceremony stands as a distinguished event dedicated to honoring companies with significant scale, substantial capitalisation, and impressive growth rates.

10 years in “Vietnam’s 50 Best Performing Companies”

This year's compilation of the Top50 list has underscored the formidable presence of prominent enterprises in Viet Nam, demonstrating their prowess across a spectrum of vital economic domains, including but not limited to retail, consumer goods, banking, manufacturing, and export.

As an illustrative case, the Masan Group has garnered accolades in two distinguished categories. This marks the tenth occasion that Masan Group has earned a coveted spot in this esteemed ranking since its inaugural unveiling in 2011.

This milestone serves as a testament to Masan's unwavering ascent, characterised by remarkable breakthroughs and sustainable growth, thereby making a substantial contribution to the country's economic progress.

Throughout its 27 years of establishment and growth, Masan Group stands as the leading enterprise in Viet Nam's consumer and retail sector.

Customers shop at a WinMart store belonging to Masan Group. — Photo courtesy of Masan Group.

The group operates a network exceeding 3,500 sales outlets, catering to vital consumer requirements. It further champions inventive strategies and technological investments, fostering the creation of diverse, top-tier products to meet domestic demand and facilitate exports to key markets including the United States, Japan, Australia, Canada and the Republic of Korea (RoK).

In the initial half of 2023, Masan recorded total assets of nearly VNĐ140.9 trillion (US$5.8 billion), with total equity amounting to VNĐ37.5 trillion ($1.54 billion). Notably, cash and cash equivalents totaled VNĐ13.5 trillion ($554 million).

During the second quarter of 2023, the group's free cash flow displayed consistent improvement, surging to VNĐ1.7 trillion ($69.8 trillion) in comparison to a mere VNĐ162 billion ($6.65 million) during the same period in 2022.

It achieved a net revenue of VNĐ37.3 trillion ($1.53 billion) in the initial six months of 2023, reflecting a remarkable 3.6 per cent surge from the VNĐ36 trillion ($1.48 billion) achieved in the corresponding span of 2022.

The operating profit of The CrownX ("TCX"), Masan's integrated retail consumer platform, which includes Masan Consolidated WinCommerce ("WCM") and Masan Consumer Holdings ("MCH"), experienced remarkable year-on-year growth of 38.8 per cent. This exceptional progress was underpinned by the robust performance of its consumer goods enterprise.

Held in high regard by top global institutions

Recently, J.P. Morgan, a venerable and globally renowned firm specialising in financial services, investment banking, and asset management, has provided a forward-looking projection for the growth prospects of Masan shares (HOSE: MSN).

J.P. Morgan's forecast indicates that the target price for MSN shares in 2024 is anticipated to be at VNĐ102,000 ($4.2) per share. It also anticipates average annual compound EPS growth of 36 per cent in the period of 2023-2025.

In a released report, J.P. Morgan underscored the following key point: "Viet Nam stands out as the most captivating and extraordinary narrative of consumer growth within the Asian region."

It offered an optimistic perspective on Vietnamese consumer stocks over the next twelve months. According to its evaluation, the consumer retail market in Viet Nam is poised for substantial growth, propelled by the country's rapidly expanding economy, burgeoning middle-class population, and the accelerating trend of urbanisation.

J.P. Morgan's prediction posits that Viet Nam is on the brink of becoming a prominent focal point for consumption growth in the broader regional context.

According to J.P. Morgan's analysis, Masan shares have assumed a prominent role in representing Viet Nam's alluring consumption narrative, owing to their prominent standing in a substantial and promising retail market.

Masan's strategic capital allocation efforts, which prioritise key areas of consumption, retail, and the advancement of the existing consumer market, further bolster their position as a standout example of Viet Nam's compelling consumption narrative.

Despite a demanding macroeconomic environment and sluggish domestic consumption, the group managed to attain growth and secured its place within the esteemed "Top 50 Most Effective Companies in Vietnam" list, earning accolades from prominent global organisations.

This achievement underscores the resilience of Masan's core consumer and retail enterprises, as well as the robust financial underpinning of this division.