During a recent press meeting, Truong Cong Thang, CEO of Masan Consumer (MCH), a fast-moving consumer goods company under Masan Group (MSN), highlighted the company's attractive dividend policy as a point of pride. From 2018 to 2024 alone, the enterprise disbursed approximately USD 1,5 billion in cash dividends to shareholders.

"I believe and hope that Masan Consumer will consistently generate strong business results, allowing us to distribute 50-80% of our annual profits as cash dividends to shareholders," he stated during his recent address regarding plans to complete MCH's listing on the HoSE.

Truong Cong Thang, CEO of Masan Consumer (MCH). Photo: Hong Hanh

Since MCH shares began trading on UPCoM, the company has almost continuously shared 45% of its profits with shareholders, with the exception of 2022. In 2023, the company continued this trend, distributing a record-high 268% of its par value, equivalent to 26.800 dong per share. For 2024, the dividend payout ratio remains high at 95%.

However, due to a concentrated shareholder structure, the majority of these dividends flow back to the parent company. Throughout the period from its UPCoM listing until 2024, Masan Group, through Masan Consumer Holdings Company Limited, consistently held over 90% of MCH's capital. Currently, this ratio has decreased to 69,71%. The total dividends received by the parent company since 2017 exceed 40.000 ty dong, equivalent to more than USD 1,5 billion.

MCH almost exhausted its accumulated profits to implement this policy in 2023 and 2024. During the same period, the company began announcing its plan to transfer its listing to the HoSE for an initial public offering. Many investors expressed concern that this move might be a way for the parent company to withdraw funds before "opening the doors" for external shareholders to participate in MCH.

Despite these concerns, Masan Consumer's leadership has repeatedly affirmed their intention for MCH to be a stock that not only offers good growth and high profits but also provides substantial dividends to shareholders. The company plans to maintain this policy in the future, as profits are projected to increase steadily in the medium and long term. Management also noted that the generous dividend policy does not impact the company's operations, as Masan Consumer maintains sufficient investment for product innovation, distribution network expansion, and operational capacity enhancement.

Masan Consumer stands as one of Masan Group's primary growth pillars, alongside the modern retail chain WinCommerce. The company owns five brands, each generating over 2.000 ty dong in revenue: Chin-su, Omachi, Kokomi, Nam Ngu, and WakeUp 247.

Recently, the planned listing transfer has provided significant support for MCH shares. A recent report by Vina Securities (VNSC) highlighted Masan Consumer's stock as a "rare phenomenon defying the trend" during the deep market correction in mid-October. The stock closed at 217.100 dong per unit on 5/12, pushing its market capitalization to over 229 ty dong, nearly double that of its parent company, Masan, or the once "national stock", Vinamilk (VNM).

VNSC pointed out the paradox: the price surge occurred immediately after Masan Consumer announced its third Quarter financial report, which showed a 6% decrease in revenue and a 19% drop in after-tax profit year-on-year. One of the main reasons cited for this was the plan to transfer to the HoSE. "This is the strongest catalyst," the analysis team noted.

According to Vietcap Securities, MCH could become the 7th largest stock in the entire market and the largest consumer goods sector stock immediately upon its listing. Assuming the listing proceeds as planned in December, the stock would become eligible for margin trading after six months. The analysis team also predicts that MCH is likely to be included in important index baskets such as VN30 and could enter major ETF index baskets by September 2026.

However, VNSC cautioned that MCH's current P/E (price-to-earnings) ratio largely reflects the expectation of the listing transfer. If the financial results for the final Quarter do not recover strongly as promised, the stock could experience a sharp correction. Currently, as the stock still trades on UPCoM and has a concentrated shareholder structure, its liquidity is lower compared to other companies of similar market capitalization, making it challenging for individual investors to trade large volumes.

Tat Dat