[Food & Beverage] 3 December, 2021

MASAN GROUP BUY

(MSN VN) (Upgrade)

2022: Profit to reach new high Target price:

VND179,000
(Upside +17,7%)

Mirae Asset Securities (Vietnam) JSC

Nguyen Tien Duc, duc.nt@miraeasset.com.vn

Recommendation and valuation • We upgrade our rating for Masan Group (MSN) to Buy (from Hold) and raise our target price to
VND179,000 (from VND143,000). Our target price is based on a sum-of-the-parts approach, with
separate multiples applied to MSN’s five major business segments: packaged food, meat value chain,
high-tech materials, grocery retail, and financial services.

9M21 better than expected • In 9M21, the fourth wave of COVID-19 forced many large cities in Vietnam to apply lockdown measures.
Meanwhile, the world’s major economies recovered strongly from the damages inflicted by the
pandemic, thanks to high percentages of fully-vaccinated populations. All four business segments of
MSN posted revenue growth in 9M21, benefitting from domestic and global recoveries (consumer
products +13.4% YoY, meat chain +32.8% YoY, high-tech materials +89.3% YoY, grocery retail +5% YoY).
MSN’s consolidated revenue increased 16.5% YoY in 9M21 to VND64,801bn. Consolidated net profit after
tax bounced back 267.9% from the low base of 9M20 to VND2,983bn, on the back of higher revenue and
improved operating profit margin (the retail and high-tech materials segments had strongly improved
operating profit margins).
• MSN plans to sell 100% of its animal feed business to De Heus. The deal is expected to be completed in
early-2022 and to bring MSN about VND7,200bn to de-leverage and finance the development plan of the
meat business. In addition, MSN is going to issue 4.9% of The Crown X to Korea’s SK Group for US$340m.

2022 forecast • We expect economic activity and consumer habits in Vietnam to recover to their pre-COVID conditions
in 2022, thanks to a fully vaccinated population that should reach 100% (age 18 and above) in early-2022.
• MSN’s 2022 revenue is forecast to decline 4.8% YoY, due to the impact of divestment from its animal feed
business. In contrast, revenue of all other businesses is projected to enjoy robust growth in 2022:
consumer products: +12.4% YoY, thanks to premiumization strategy; grocery retail: +19.4% YoY, based
on plans to open another 1,000 convenience stores over the next 12 months; and high-tech materials:
+7.6% YoY, thanks to better average price of tungsten. MSN’s consolidated NPAT is projected to
accelerate 37.2% YoY, thanks to: 1) lower food material prices; 2) higher tungsten price; 3) higher shared
profit from Techcombank, following approval for the bank to raise its charter capital level.
• 2022 MSN’s EPS is projected to reach a new high of VND5,311.

Key data
(%) MSN VN VN-Index Current price (02/12/2021, VND) 152,300 Market capital (VNDbn) 179,795
1,181
200
180 Net profit (21F, VNDbn) 4,052 Outstanding shares (mn)
160

140 EPS growth (21F, %) 228.4% Free float (%) 42.2

120

100 P/E current (TTM, x) 55.75 Foreign ownership (%) 32.2

80

60 P/E forward(21F,x) 42.46 Beta (12M) 0.9

40
20 Current market P/E (x) 17.3 52-wk low (VND) 80,000
-
Dec-20 Mar-21 Jun-21 Sep-21 52-wk high (VND) 159,700
Share price change Financial and valuation data
(%) 1M 6M 12M FY 2020 2021F 2022F 2023F
Absolute 4.7 14.3 80.8 Net revenue (VNDbn) 77,218 94,746 90,154 100,938
Relative 1.7 2.9 35.2 Operating profit (VNDbn) 1,682 6,319 7,506 8,771
Operating profit growth (% YoY) -65.3% 275.8% 18.8% 16.8%
Net profit (VNDbn) 1,234 4,052 6,269 7,453
Net profit growth (% YoY) -77.8% 228.4% 54.7% 18.9%
EPS (VND) 1,045 3,432 5,311 6,313
EPS growth (% YoY) -77.8% 228.4% 54.7% 18.9%
ROE% 8.8% 27.0% 28.2% 25.8%
ROA% 1.2% 4.6% 6.9% 7.7%
Cash divided/par value (%) 0.0% 12.0% 0.0% 0.0%

Note: EPS diluted does not include bonus & welfare fund
Source: Bloomberg, Mirae Asset Vietnam Research
29 November 2021 Masan Group

9M2021 business result exceeded expectation

Top line grew strongly amid the 4th wave of COVID-19: The pandemic was so serious in the
3Q21 that half of the cities and provinces in the country had to lock down from July. As a result,
Vietnam’s GDP fell 6.16% YoY in 3Q21, leading to 9M21 GDP growth of only 1.4% YoY.

MSN’s net revenue reached a historical high in 9M21 (+16.5% YoY), despite the pandemic. The
consumer product segment (Masan Consumer Holdings - MCH), grocery retail (VinCommerce
- VCM), and meat chain (Masan MEATLife – MML) benefited directly from social distancing
measures, thanks to increased demand for packaged food with long shelf lives, closure of wet
markets, and higher demand for chilled meat. The high-tech materials segment (Masan High-
Tech Materials – MHT) posted incredible revenue growth of 89.3% YoY, thanks to a recovery
in the global tungsten price from 5-year low levels in 2020, and the consolidation of H.C.
Starck.

Figure 1. MSN’s net revenue accelerated significantly in 9M21, thanks to MML and MHT

Unit: VNDbn 9M21 9M20 Change Comments

Consolidated net revenue 64,801 55,618 16.5%

Masan Consumer Holdings 18,083 15,946 13.4%

Seasonings 6,329 5,646 12.1% • These 3 product lines benefited directly from increased demand for long shelf-
life packaged foods amid lockdown conditions due to COVID-19. In particular,
demand for premium instant noodles and premium fish sauce surged, as mid-
Convenience foods 5,606 4,532 23.7%
and high-income families had to find solutions for quick meals at home. In
9M21, products in the premium price segment accounted for 10% and 51% of
Processed meat N/a N/a 51.7% the revenue from seasonings and convenience foods, respectively.

• Demand for personal care products decreased sharply amid lockdown

Personal and home care 1,019 1,106 -7.9%
conditions, as people travelled less.

• Sales of energy drinks and beer rose 62.1% and 43.2% YoY, respectively, in
9M21 as these two products has just been released in early 2020. The increase
Beverage N/a N/a 5.4%
of energy drinks and beer was offset by reduced sales of other beverage
product.

Masan MEATLife 15,152 11,412 32.8%

• Vietnam’s pig herd size increased by 5% YoY in 9M21, driven by high pork
prices. Thus, MSN’s animal feed revenue jumped in 9M21, as pig feed had
Animal feed 12,189 9,774 24.7%
higher selling price and greater sales volume (+26.3% YoY). On the other hand,
aqua feed sales volume rose by a modest 2.4% YoY in 9M21.

• Wet markets were closed in 19 provinces in the Mekong Delta in 3Q21, due to
Chilled meat 2,320 1,638 42.0% the fourth wave of COVID-19, leading to higher demand for chilled meat in the
modern grocery retail system.

• MML bought 51% of 3F Viet (a fresh poultry chain) from 4Q20. By 9M21, MML’s
Poultry 1,010 0 N/a poultry products have been distributed in over 2,000 sales points of
VinCommerce convenience stores nationwide.

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2 December, 2021 Masan Group

High-Tech Materials (MHT) 9,604 5,073 89.3%

• Higher revenue mostly thanks to consolidation of H.C. Starck (9 months in

2021 compared with 4 months in 2020).
Tungsten (WO3) 8,545 3,174 169.2% • Average price of ammonium paratungstate (APT) recovered continuously in
2021. By end-September, ATP price had increased 24% to US$276/mtu from
end-2020.

• Average selling price of fluorspar rose 2% YoY to US$414/MT. However, sales

Fluorspar Acid Grade 906 1,134 -20.1%
volume fell sharply, as production was interrupted by technical issues.

• Global copper price surged 57% YoY in 9M21 to US$9,194/ton. However, MSN
Copper ore -28 750 N/a had no revenue from copper ore, as the company did not receive an export
permit from the government.

Other 181 16 1052.9 • Bismuth production increased 327% YoY to 1,584 tons in 9M21.

VinCommerce 23,982 22,845 5.0%

• Number of Vinmart supermarkets in 9M21 fell by one to 122 from 9M20.

Supermarkets 7,330 8,246 -12.5% • Revenue/m2 decreased 7.8% YoY in 9M21, driven by the closure of
supermarkets located inside shopping malls amid city-wide lockdowns.

• Number of Vinmart Plus convenience stores in 9M21 was 2,334 (increase of

103 from end-2020).
Convenient stores 16,168 15,020 7.1%
• Revenue/m2 increased by 19.9% YoY in 9M21, as closure of wet markets led to
surge in traffic to convenience stores.

Source: MSN, Mirae Asset Vietnam Research

Operating profit margin (OPM) improved remarkably, thanks to VCM and MHT:
Consolidated OPM of MSN increased by 4.9%p YoY in 9M21 to 5.9%, thanks to the OPM of
VCM and MHT improving 9.0%p and 9.3%p YoY, respectively, in 9M21. In particular, VCM post
net operating loss of VND714bn in 9M21, which is much less than the loss of VND2,024bn
same period last year, thanks to the fact that MSN successfully negotiated with suppliers to
increase commercial profit margin by 3.5%, and cut operating costs, logistics costs, and other
costs. In contrast, the meat value chain saw its OPM reduced by 1.6%p YoY, due to higher
input prices and consolidation of the poultry business.

Figure 2. 9M21 average price of food material and animal feed material was higher than 9M20

600
USD/mt

500

400

300

200

100

0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

2020 2021
Soybean meal Maize Wheat

Source: World Bank

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2 December, 2021 Masan Group

Figure 3. Operating profit increased sharply, thanks mainly to better results of grocery retail segment
Unit: VNDbn 9M21 9M20 Change Comments

Consolidated operating
3,796 524 624.8%
profit

OPM consolidated 5.9% 0.9% 4.9% p

MCH 3,710 3,268 13.5%
• MCH’s 9M21 gross margin (GM) improved 1.1%p YoY.
• Seasonings, convenience food, and processed meat had higher
GM compared with the same period last year, thanks to an
MCH’s OPM 20.5% 20.5% 0.0% p
increased share of premium products. However, the better
results of the aforementioned product lines was offset by lower
margins of beverage and home/personal care products.
MML 703 709 -0.9%

• 9M21 GM of MML fell 4.1%p YoY to 13%.

• The GM of animal feed segment decreased sharply in 9M21, due
to material price hikes.
MML’s OPM 4.6% 6.2% -1.6% p
• The GM of chilled pork improved to 24% in 9M21, thanks to lower
live hog prices and higher production.
• The poultry product line posted negative gross profit in 9M21.

MHT 470 (225) N/a

• MHT’s GM increased to 12.9% in 9M21 from 3.6% in 9M20, thanks

MHT’s OPM 4.9% -4.4% 9.3% p
to higher tungsten price.

VCM (714) (2,738) -6.6%

• Lower input price thanks to negotiations with suppliers.
VCM’s OPM -3.0% -12.0% 9.0% p • VCM closed 200 low-profit convenience stores and expanded its
cost-cutting program, which resulted in improved OM in 9M21.
Unlocated operating
(373) (491) -24%
expenses
Source: MSN, Mirae Asset Vietnam Research

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2 December, 2021 Masan Group

Net profit of 9M21 increased strongly from low base of 9M20, heading to pre-
consolidation of VCM level: MCH and TCB were two major net profit contributors in 9M21,
at VND3,486bn and VND2,905bn, respectively. In addition, decreased net loss of VCM in 9M21
is the third factor that supported the net profit recovery of MSN.

Figure 4. 9M21 net profit increased strongly from same period last year.
9M21 9M20 Change Comment
Consolidated net profit
2,983 811 267.9%
after tax (NPAT)
NPAT margin 4.6% 1.5% 3.1%p
MCH 3,486 3,011 15.8%

MCH NPAT margin 19.3 18.9 0.4%p

MML 379 129 193.0%

MML NPAT margin 2.5% 1.1% 1.4%p
In 9M21, MHT had modest one-time profit, while that of 9M20 was
MHT (222) 68 N/a VND1,390. Hence, MHT’s NPAT decreased in 9M21, despite higher
operating profit.
MHT NPAT margin -2.3% 1.3% -3.7%p
VCM (1,019) (3,145) N/a
VCM NPAT margin -4.2% -13.8% 9.5%p

Shared profit from MSN holds a 20% stake in Techcombank in Vietnam. In 9M21, the
2,905 1,809 60.6%
joint ventures bank posted net profit of VND11,237bn (+61% YoY).

This account mostly reflects the operating expenses and financial

Other un-located expenses of MSN’s mother company. By end-9M21, MSN’s mother
(2,547) (1,061) N/A
profit (loss) company had net debt (bank loans, bonds, and others) of
VND28,900bn, which is much higher than same period last year.

Net profit attributed to

2,126 969 219.5%
common shareholders

Source: MSN, Mirae Asset Vietnam Research

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2 December, 2021 Masan Group

Major events in 3Q21

(06/11/2021) MML to divest its animal feed business: MML plans to sell 100% of its animal
feed business to De Heus in order to focus on the meat business. In exchange, De Heus will
supply 70% of the animal feed demand of MMl and 2.8mn porkers over the next five years.
After this deal, MML will only own 100% share of its chilled meat business and 51% of its
poultry business.

We expect MML’s revenue in FY22 to decline by 72.8% YoY to VND5,711bn, driven by the
divestment. Besides, the transaction is not likely to generate new cash flows for MML, as all
shares of the animal feed business were used as payment assets for VND7,284bn-worth of
bonds issued earlier. Capital gain from the divestment will be used to reduce the group’s debt
and finance chilled meat business development.

(11/11/2021) SK plans to invest another US$340mn in The Crown X (TCX): SK is expected

to own 4.9% shares of TCX after the transaction, while MSN will keep ownership of 84.9%. TCX
currently owns 85.7% of Masan Consumer Holdings (MCH) and 83.7% of VinCommerce (VCM).
Hence, SK values TCX at US$6.9bn (US$3.7bn for MCH and US$4.38 for VCM). Note that SK
valued VCM at US$2.5bn in April 2021, as they spent US$410mn to buy a 16.26% share of VCM.
The proceeds from this capital increase of TCX will be used to reduce debt and develop about
1,000 new Vinmart Plus convenience stores in 2022.

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2 December, 2021 Masan Group

2022 outlook: Profit to reach new high

FY22F revenue expected to decline slightly, but net profit likely to accelerate: Over 53%
of Vietnamese have been fully COVID-19 vaccinated as of 29 November, 2021. At the current
vaccination rate, we believe that Vietnam will achieve herd immunity to COVID-19 to help the
domestic consumer market recover to normal levels in the first quarter of 2022.

The sudden increase in demand for packaged foods and the closure of traditional markets
during quarantines have helped to increase MSN’s sales of packaged food and convenience
store sales in 2021. However, those two factors are not likely to be repeated in 2022. In
addition, MSN’s divestment from its animal feed business is expected to reduce MSN's
revenue by about VND15,000bn. As a result, MSN's consolidated revenue in 2022 is forecast
at VND90,154 bn, down 4.8% compared with the estimate for 2021.

MCH and TCB are forecast to continue to be the two biggest profit contributors for MSN in
2022, with profits of VND5,733bn (+18.9% YoY) and VND3,943bn (+12.4% YoY), respectively.
Profit after tax of MML in 2022 is forecast to decrease slightly, due to the absence of the
contribution of animal feed products. In 2022, MHT is expected to bring in VND465bn of NPAT
for the group (+571.7% YoY), thanks to the increase in the average selling price of tungsten
and fluorspar. Finally, VCM’s net-loss is likely to be at VND674bn, as the group plans to open
1,000 new convenience stores. Unallocated expenses in 2022 are forecast to decrease
compared with 2021, as the group's interest expenses are expected to decline in line with the
group's debt reduction plan. As a result, MSN 2022's consolidated NPAT is expected to reach
VND7,426bn, up 37.2% compared with the estimated results for 2021.

Figure 5. MSN forecast results 2022

Unit: VNDbn 2022F 2021F Change Comments
Consolidated revenue 90,154 94,746 -4.8%
• Revenue growth of seasoning and convenience foods are forecast to slow
to 8% YoY and 12% YoY, respectively, from 2021’s high base.
• Travel and outdoor activities in Vietnam are expected to return to normal
MCH 30,047 26,740 12.4%
levels in 2022. Thus, beverage, personal care, and beer products are
expected to grow rapidly, at +15.6%, +12%, and +25%, respectively, from
2021’s low base.

• Revenue from animal feed in 2022 is 0.

MML 5,711 20,991 -72.8% • Revenue of chilled meat and poultry are forecast to grow 18% YoY and 35%
YoY, respectively, thanks to additional 1,000 convenience stores of VCM.

• Average selling price of ammonium paratungstate (APT) is forecast to

increase 7% YoY in 2022.
MHT 15,904 14,787 7.6% • Fluorspar factory had to close for two months in 2021, due to maintenance.
As a result, fluorspar production is expected to increase 15% YoY in 2022,
thanks to longer period of operation.

• Supermarkets: Revenue is forecast to increase 7% YoY, thanks to

expectation for supermarkets located inside mega malls to operate the
whole year.
VCM 38,492 32,228 19.4% • Convenience stores: Number of stores is expected to increase by 1,000 in
2022, with average operating stores in 2022 likely to reach 2,734.
Revenue/m2 is projected to decline 8% YoY in 2022, due to impact of new
stores.

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2 December, 2021 Masan Group

Figure 6. Gross profit margin is forecasted to improve in 2022

2022F 2021F Change Comments
Consolidated operating
7,506 6,319 18.8%
profit
Consolidated operating
8.3% 6.7% 1.7%p
profit margin
MCH 6,367 5,292 20.3%

• Gross margin of MCH in 2022 is forecast to increase 1.1%p to

42.6%, thanks to higher proportion of premium products in total
MCH OM 21.2% 19.8% 1.4%p revenue and lower input prices (price of wheat, edible oil, etc.,
have retreated from their decade-highs in 3Q21).
• SG&A as % of revenue is expected to return to pre-Covid levels

• Operating profit of MML is expected to fall sharply, due to

MML 529 854 -38.0%
divestment from its animal feed business.

• Chilled meat: Gross profit margin is forecast to improve to 27% in

2022, as live hog prices are expected to fall by 5–7% in 2022.
MML OM 9.3% 4.1% 5.2%p
• Poultry: Gross margin is expected to reach 0% (break-even),
thanks to higher sales volume.

MHT 1,905 1,273 49.6%

MHT OM 12.0% 8.6% 3.4%p • Higher OM is expected, thanks to higher average tungsten price.

VCM (541) (388) N/a

• Gross margin of existing stores is expected to improve by 2%p in

2022, thanks to better input price deal made with suppliers in
VCM OM -1.4% -1.2% -0.2%p
3Q21. However, such improvement is likely to be offset by low
margins of 1,000 newly-opened stores.

Un-located operating
(754) (712) 6.0%
expenses

Source: MSN, Mirae Asset Vietnam Research

Figure 7. Net profit is forecast to set new high in 2022

Unit: VNDbn 2022F 2021F Change Comment
Consolidated net profit
7,426 5,413 37.2%
after tax
Consolidated net
8.2% 5.7% 2.5%p
margin (NM)
MCH 5,733 4,822 18.9%
MCH NM 19.1% 18.0% 1.0%p

MML 299 310 -3.6%

MML NM 5.2% 1.5% 3.8%p

MHT 465 69 571.7%

MHT NM 2.9% 0.5% 2.5%p

VCM (674) (543) N/a
VCM NM -1.8% -1.7% -0.1%p
Shared profit from • Shared net profit from associates is mostly from Techcombank
3,943 3,508 12.4%
associates (TCB VN). Please refer to this link for detail analysis and forecast.
Other profit/(loss) • Un-located net loss is mostly from SG&A and financial loss of
(2,340) (2,754) N/a
after tax MSN’s mother company.
Net profit attributed to
6,269 4,052 54.7%
common shareholders
Source: MSN, Mirae Asset Vietnam Research

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2 December, 2021 Masan Group

Recommend Buy with target price of VND179,000

Figure 8. MSN’s valuation model (SOTP approach)

Sub’s enterprise MSN’s economic
Target multiple MSN’s economic interest
Subsidiaries Approach value 2022 interest value
(x) (VNDbn) (VNDbn)
Masan Consumer Holdings P/E 20.0 114,661 73% 83,427
Masan MEATLife P/B 2.2 21,401 88% 18,811
Masan High-Tech Materials P/B 2.5 36,588 86% 21,368
VinCommerce EV/EBITDA 2.3 88,531 71% 62,911
Techcombank P/B 2.0 274,355 20% 54,597
Total value of MSN’s economic interest in subs 251,357
MSN’s net debt 2022 (VNDbn) 40,335
MSN’s enterprise value 2022 (VNDbn) 211,022
Outstanding shares 2022 (mn) 1,181
Forecast price per share 2022 (VND) 178,751
Target price 2022 (VND) 179,000
Source: Mirae Asset Research

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 2 December, 2021 Masan Group

P&L report - Consolidated (Summary) Balance sheet - Consolidated (Summary)

VNDbn 2020 2021F 2022F 2023F VNDbn 2020 2021F 2022F 2023F
Net revenue 77,218 94,746 90,154 100,938 Current asset 29,761 33,054 31,520 33,734
COGS (59,329) (72,852) (66,600) (74,194) Cash & Equiv. 7,721 7,457 6,696 5,940
Gross profit 17,889 21,894 23,554 26,743 ST investment 447 549 522 585
SG&A (16,207) (15,575) (16,048) (17,973) Account receivable 2,062 2,530 2,407 2,695
Operating profit 1,682 6,319 7,506 8,771 Inventory 12,498 14,212 14,425 16,150
Other profit/(loss) 643 (52) 1,121 1,340 Others 7,032 8,306 7,470 8,363
Net profit before tax 2,325 6,267 8,628 10,111 Non-current asset 82,144 83,027 75,048 78,628
Tax expenses (930) (854) (1,201) (1,385) Investment in joint venture 20,353 21,853 24,853 26,353
Net profit after tax 1,395 5,413 7,426 8,726 Tangible asset 34,322 32,617 27,534 29,534
NP attributes to common SHs 1,234 4,052 6,269 7,453 Others 27,470 28,557 22,660 22,740
Minority interest 161 1,361 1,157 1,273 Total asset 111,905 116,081 106,567 112,361
Short-term liability 38,875 43,723 36,268 37,578
Account payable 6,833 8,384 6,311 6,056
ST borrowing 22,545 23,686 21,637 22,206
Other ST liabilities 9,497 11,653 8,320 9,315
Long term liability 51,832 46,493 38,811 35,689
LT borrowing 39,466 37,966 32,271 29,044
Other LT liability 12,366 8,527 6,540 6,645
Total liabilities 90,706 90,216 75,079 73,266
Shareholders’ equity 15,938 18,631 24,901 32,354
Paid in capital 11,747 11,805 11,805 11,805
Retained profit 2,182 4,817 11,087 18,540
Others 2,009 2,009 2,009 2,009
Minority interest 9,093 10,911 10,111 10,111
Total equity & liability 111,905 116,081 106,567 112,361

Cash flow (summary) Key ratios

VNDbn 2020 2021F 2022F 2023F 2020 2021F 2022F 2023F
Net profit before tax 2,325 6,267 8,628 10,111 EPS Diluted (VND) 1,045 3,432 5,311 6,313
Depreciation 3,242 5,297 3,728 3,163 BVPS (VND) 13,568 15,782 21,093 27,406
Other adjustment (3,740) (8,043) (6,009) (6,228) Net debt/share (VND) 52,790 52,224 45,664 43,413
Cashflow from operating activities 1,827 3,521 6,346 7,046 113.7% 35.0% 0.0% 0.0%
Dividend/net profit
before change in working capital
Change in non-cash current assets (935) (3,000) 290 (2,907) Revenue growth 106.7% 22.7% -4.8% 12.0%
Change in non-debt current liabilities 460 3,707 (5,406) 741 EBITDA growth -35.1% 135.9% -3.3% 6.2%
Cashflow from operating activities 1,351 4,227 1,231 4,880 Operating profit growth -65.3% 275.8% 18.8% 16.8%
Investment in fixed asset (3,678) (3,398) (2,000) (2,000) EPS diluted growth -77.8% 228.4% 54.7% 18.9%
Change in long term financial investment (30,797) (1,500) (3,000) (1,500) Receivable cycle (x) 37 37 37 37
Other change in long term assets 718 484 10,751 523 Inventory cycle (x) 5 5 5 5
Cashflow from investment (33,757) (4,414) 5,751 (2,977) Payable cycle (x) 11 11 14 17
Share issuance 2,386 9,727 - - ROA 1.2% 4.7% 7.0% 7.8%
Share buy back - (8,029) - - ROE 8.8% 29.1% 29.8% 27.0%
Change in net debt 32,348 (359) (7,744) (2,658)
Dividend paid (1,403) (1,417) - -
Cashflow from financial activities 33,331 (77) (7,744) (2,658)
Net cashflow in period 925 (264) (762) (755)
Cash at beginning 6,801 7,721 7,457 6,696
Affect in change of foreign exchange (4) - - -
Net cash at end of period 7,721 7,457 6,696 5,940

Source: Company report, Mirae Asset Vietnam Research

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2 December, 2021 Masan Group

Appendix 1

Important disclosures and disclaimers

Two-year rating and TP history
Company Date Rating TP (VND)
Masan Group (MSN VN) 02/07/2021 Trading Buy 131,000
Masan Group (MSN VN) 09/08/2021 Hold 143,000
Masan Group (MSN VN) 02/12/2021 Buy 179,000

Stock ratings Sector ratings

Buy Expected 12-month performance: +20% or greater Overweight Expected to outperform the market over 12 months
Trading Buy Expected 12-month performance: +10% to +20% Neutral Expected to perform in line with the market over 12 months
Hold Expected 12-month performance: -10% to +10% Underweight Expected to underperform the market over 12 months
Sell Expected 12-month performance: -10% or worse

Rating and TP history: Share price (─), TP (▬), Not Rated (■), Buy (▲), Trading Buy (■), Hold (●), Sell (◆)
* Our investment rating is a guide to the expected return of the stock over the next 12 months.
* Outside of the official ratings of Mirae Asset Co., Ltd., analysts may call trading opportunities should technical or short-term material developments arise.
* The TP was determined by the research analyst through valuation methods discussed in this report, in part based on estimates of future earnings.
* TP achievement may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.

Analyst certification
The research analysts who prepared this report (the “Analysts”) are subject to Vietnamese securities regulations. They are neither registered as research
analysts in any other jurisdiction nor subject to the laws and regulations thereof. Opinions expressed in this publication about the subject securities and
companies accurately reflect the personal views of the Analysts primarily responsible for this report. Mirae Asset Securities (Vietnam) LLC (MAS) policy
prohibits its Analysts and members of their households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not
serve as an officer, director or advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any
compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report.
No part of the compensation of the Analysts was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report
but, like all employees of MAS, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other
business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the
Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or MAS except as otherwise stated herein.

Disclaimers
This report is published by Mirae Asset Securities (Vietnam) LLC (MAS), a broker-dealer registered in the Socialist Republic of Vietnam and a member of the
Vietnam Stock Exchanges. Information and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such
information has not been independently verified and MAS makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy,
completeness or correctness of the information and opinions contained herein or of any translation into English from the Vietnamese language. In case of
an English translation of a report prepared in the Vietnamese language, the original Vietnamese language report may have been made available to investors
in advance of this report.
The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common
practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws and regulations or subject MAS and its
affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof.
This report is for general information purposes only and it is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in
any securities or other financial instruments. The report does not constitute investment advice to any person and such person shall not be treated as a client
of MAS by virtue of receiving this report. This report does not take into account the particular investment objectives, financial situations, or needs of individual
clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and opinions contained herein are as of the
date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may
depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not
guaranteed, and a loss of original capital may occur. MAS, its affiliates and their directors, officers, employees and agents do not accept any liability for any
loss arising out of the use hereof.
MAS may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may
reflect different assumptions, views and analytical methods of the analysts who prepared them. MAS may make investment decisions that are inconsistent
with the opinions and views expressed in this research report. MAS, its affiliates and their directors, officers, employees and agents may have long or short
positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other
financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. MAS and its affiliates may have had, or
may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services
as are permitted under applicable laws and regulations. No part of this document may be copied or reproduced in any manner or form or redistributed or
published, in whole or in part, without the prior written consent of MAS.

Distribution

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2 December, 2021 Masan Group

United Kingdom: This report is being distributed by Mirae Asset Securities (UK) Ltd. in the United Kingdom only to (i) investment professionals falling within
Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other
persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant
Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents.
United States: Mirae Asset is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of
research reports and the independence of research analysts. This report is distributed in the U.S. by Mirae Asset Securities (USA) Inc., a member of
FINRA/SIPC, to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6(b)(4) under the U.S. Securities
Exchange Act of 1934, as amended. All U.S. persons that receive this document by their acceptance hereof represent and warrant that they are a major U.S.
institutional investor and have not received this report under any express or implied understanding that they will direct commission income to Mirae Asset
or its affiliates. Any U.S. recipient of this document wishing to effect a transaction in any securities discussed herein should contact and place orders with
Mirae Asset Securities (USA) Inc. Mirae Asset Securities (USA) Inc. accepts responsibility for the contents of this report in the U.S., subject to the terms hereof,
to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor. Under no circumstances should any recipient of this research
report effect any transaction to buy or sell securities or related financial instruments through Mirae Asset. The securities described in this report may not
have been registered under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent
registration or an applicable exemption from the registration requirements.
Hong Kong: This report is distributed in Hong Kong by Mirae Asset Securities (HK) Limited, which is regulated by the Hong Kong Securities and Futures
Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional
investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules
made thereunder and may not be redistributed in whole or in part in Hong Kong to any person.
All other jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Mirae Asset
or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Mirae Asset
and its affiliates to any registration or licensing requirement within such jurisdiction.

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2 December, 2021 Masan Group

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Mirae Asset Securities Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd.
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Mirae Asset Vietnam Research 13