New consumer bluechip to debut on HSX: what will MCH bring to the market?

New consumer bluechip to debut on HSX: what will MCH bring to the market?

Masan Consumer (MCH) will announce detailed information on December 4 regarding its listing plan on the Ho Chi Minh City Stock Exchange (HSX), marking an important milestone in the company’s development journey.

The move is a noticeable highlight as Vietnam’s stock market enters its year-end acceleration phase when investors seek clear signals to shape expectations for the upcoming year. The plan is not a spur-of-the-moment decision but a well-prepared roadmap in line with the new development stage of the company.

The event takes place at a special time for Vietnam’s stock market with increasingly robust IPO activity and the upgrade to secondary emerging market status by FTSE Russell. Although foreign investors remain cautious and occasionally turn to net selling throughout the year, the upgrade is expected to improve liquidity, market quality, and international fund interest.

As the market needs more large-scale, transparent, and well-operated companies to strengthen confidence, the listing of MCH shares on HSX is expected to be a boon for the market. This marks the emergence of a leading consumer stock –⁠ a bright spot at a time when the market is looking for more long-term stability.

The market needs more balance and new quality goods

At the end of the year, the market is subject to fluctuations across cyclical sectors like real estate, finance, construction materials, and public investment. Meanwhile, the fast-moving consumer goods (FMCG) sector tends to be more stable, supported by recurring demand that is less sensitive to short-term fluctuations and mirrors the economy’s real purchasing power.

With nearly 30 years of development, MCH boasts a portfolio of well-known brands and a 98 per cent household penetration in Vietnam (according to Kantar’s 2024 report). MCH represents a consumer company with a sustainable foundation. Brands such as Nam Ngu, CHIN-SU, Omachi, Kokomi, and Wake-Up 247 have become an integral part of the lives of Vietnamese people across generations, with stable consumption even during difficult market periods.

The absence of major FMCG bluechips on HoSE for many years has left the market structure heavily skewed towards sectors sensitive to economic cycles. In this context, MCH’s listing plan adds a stock with dual characteristics to the market. It is stable enough to play a defensive role, but still maintaining clear growth potential thanks to its large scale and essential consumer demand. Therefore, the appearance of MCH contributes to rebalancing the market, offering investors a more harmonious mix between “stability” and “growth.”

Market upgrade –⁠ a catalyst for FMCG bluechips

Vietnam’s upgrade to “secondary emerging market” status opens important opportunities to attract international capital, especially from ETFs and active funds targeting long-term gains. According to FiinGroup, this is only the beginning. For the market to really take off, Vietnam needs more large-scale enterprises that meet transparency standards and operate efficiently.

Against this backdrop, the debut of a leading consumer stock like MCH on HSX carries symbolic significance. It represents the essential demand of over 100 million people, with a stable business model and profitability among the highest in the regional FMCG sector.

The move from UPCoM to HSX also significantly improves MCH’s accessibility to foreign investors. International funds often prioritise businesses with large enough scale, stable profits over many cycles, strong market share, recurring revenue, and high transparency –⁠ all criteria that MCH meets.

Between 2017 and 2024, MCH recorded a compound annual growth rate of 10-13 per cent in revenue, reaching $1.2 billion in 2024. In the given period, the company maintained an earnings before interest, taxes, depreciation, and amortisation margin of about 26 per cent, up more than 400 basis points from 2017 –⁠ one of the highest in Southeast Asia’s FMCG landscape.

Gross profit margin of over 42 per cent and ROIC exceeding 200 per cent (according to Masan Consumer’s internal calculations) further demonstrate exceptional capital efficiency rarely seen in the FMCG industry. These indicators reflect the resilience of the business model based on essential needs, making MCH a suitable candidate to attract long-term capital flows.

The upcoming December 4 event marks an important milestone, offering the market a clear view of MCH’s listing roadmap. When a company chooses to disclose information at year-end, it sends a positive signal: the company is upbeat about growth prospects and ready to enter a more transparent and standardised governance phase.

For investors, this is an opportunity to access official and comprehensive information about one of the largest FMCG companies in the market. This takes place when the consumer–retail sector is expected to be a bright spot thanks to the recovery of domestic demand and the shift of capital flows into highly stable industries.

For the market, the December 4 event will improve sentiment. When a leading enterprise decides to list on HoSE at a time when the market is anticipating improved liquidity, industry diversification, and a more solid bluechip line up, it strengthens belief that the market is progressing towards a more sustainable foundation.

In light of the rising average income, expanding middle class, growing modern consumer behaviour, and Vietnam’s ongoing push towards comprehensive market upgrades, a strong FMCG company with stable profitability and international vision like MCH will play an increasingly important role. Therefore, the December 4 event will lift year-end sentiment and mark the emergence of a new anchor for the market –⁠ a consumer stock offering both defensiveness and growth, accompanying the development of Vietnam’s stock market for years to come.

VIR