Masan Group Corp (MSN) BUY · the fully diluted share count has dropped from 790mn to 747mn, reducing risk. 1H performance dragged by Techcombank – Net revenues slightly increased

www.vcsc.com.vn| VCSC<GO> Viet Capital Securities | 1 See important disclosure at the end of this document

Masan Group Corp (MSN)

18 March 2011

BUY

06 September 2013

Strong base for future growth

While 1H results were as-per expectations, the recent introduction of

several new consumer brands is likely to boost growth going forward.

Added to increased visibility on the tungsten mine’s cash flow, reduction of

dilutive instruments and recent selling pressure make MSN’s share price

look undervalued. Acquisitions of Vinh Hao Mineral Water, Phu Yen Beer

and Proconco (animal feed) are also likely to provide long-term growth, but

integrating these businesses will take time. We reiterate our fully diluted

target price of VND98,000 and upgrade our rating from HOLD to BUY.

New consumer product launch to drive 2H – MSN launched three major new

products, namely 1) Sagami for the mid-tier instant noodles market segment (55-

60% of the category, total of which is estimated at USD550-600mn), 2) a new

formula of Weasel Coffee under the Vinacafe brand, and 3) a new 2:1 instant

coffee called Phinn targeted to ground & roasted coffee drinkers.

Tungsten Mine (Nui Phao) to general stable revenues from FY14 onwards –

The mine just started production, so contribution for this year will be modest: We

expect sales to reach USD36mn and no contribution to net profit due to interest

expenses. However, revenues, EBITDA and net profits should be of USD352mn,

USD173mn and USD72mn respectively in FY14 (see our sensitivity analysis

further in the report), based on a mid-cycle tungsten price of USD375/mtu

(today’s price is USD412/mtu). Operation and processing costs should be higher

in the first year, but EBITDA margins should increase to 50% over the life of the

mine.

Simplification of the Shareholding Structure – MSN is simplifying its

shareholding structure by buying and converting it’s CBs and options. As a result,

the fully diluted share count has dropped from 790mn to 747mn, reducing risk.

1H performance dragged by Techcombank – Net revenues slightly increased

5.1% and EBITDA 3.7% yoy, but net profits (before minorities) declined 73.1%

yoy (51% on proforma basis) as Techcombank booked, as expected, provisions

for bad debt in addition to non-cash allocation for MSN’s investment in

subsidiaries. MSN consumer’s revenues and net profit increases of 8.4% and

2.7% respectively, due to marketing expenses for the new product launches.

Anh Nguyen Senior Analyst

[email protected] +84 8 3 914 3588 ext. 194

Company Update Upgrade from HOLD to BUY

Current Price VND82,000

Target price VND98,000 (fully diluted share count) Upside 20%

Dividend Yield 0%

Consumer Goods

Market cap USD 2.75bn

Shares outstanding 705.1m

Fully diluted share count 747.0m

52WK High VND124,000

52WK Low VND82,500

30-D Avg. Daily Trade US$0.5mn

Foreign room available (USD) US$490m

Foreign own / limit (%) 31.2% / 49.0%

Ownership

Masan Corp. 35.5%

Sunflower Ltd. 14.2%

Orchid Fund 11.1%

Others 39.2%

Company Description Masan Group Corp (MSN) was founded and listed on HOSE in late 2009 by Mr. Nguyen Dang Quang – Chairman, after a restructure of an amorphous group of companies to seven companies under three main business lines namely consumer, financial and mining. MSN currently holds 77.7% of Masan Consumer, 30.4% of Techcombank and 76.2% of Masan Resources.

-25%

0%

25%

50%

75%

100%

Au

g-1

2

Oct

-12

Dec

-12

Feb

-13

Ap

r-1

3

Jun

-13

Au

g-1

3

MSN

VNI

Relative Performance

Key Financial Metrics 2011A 2012A 2013E 2014E 2015E

Revenues (VND bn) 7,057 10,389 13,745 23,848 26,831

Operating profit (VND bn) 1,642 2,158 2,623 6,273 7,048

Operating profit margin (%) 23.3% 20.8% 19.1% 26.3% 26.3%

Net profit (VND bn) 1,973 1,261 1,133 2,316 2,739

EPS (VND) 2,909 1,776 1,607 3,285 3,885

EPS growth (%) -37% -38.9% -9.6% 104.5% 18.3%

Pro-forma EPS (VND) 3,758 2,711 2,485 4,164 4,763

Pro-forma EPS growth (%) -21.2% -27.9% -8.3% 67.5% 14.4%

Book Value/Share (VND) 23,403 19,562 16,705 19,990 23,876

Pro-forma PER (x) 21.8 30.2 33.0 19.7 17.2

PBR (x) 3.5 4.2 4.9 4.1 3.4

ROA (%) 9.1% 5.4% 5.8% 10.9% 11.5%

ROE (%) 14.8% 9.5% 11.8% 22.0% 21.0%

Debt/Equity (%) 43.8% 73.3% 85.5% 59.7% 45.1%

mailto:[email protected]

www.vcsc.com.vn | VCSC<GO> Viet Capital Securities | 2

See important disclosure at the end of this document

HOLD Company at a Glance

Business Consumer products and mining

Revenues US$495million,

Net profits US$60million (reported) and US$95 million (pro-forma) (2012)

Key sales drivers Consumer products (sauces, noodle, beverage) & metal price

Key cost drivers Packaging cost, foodstuff material, and mining cost

Key risks factors Metal price volatility & competition within consumer business

Main competitors Asia Food Company, Nissin, Nestle

Major clients N/A

Leadership Mr. Nguyen Dang Quang (Chairman& CEO)

Address 17Le Duan, Website www.masangroup.com District1 Email [email protected] Ho Chi Minh Telephone +84.8.62563862

Revenue Mix Gross Profit Breakdown

Product Gross

margin Contribute to Gross Profit

Noodle 33% 20%

Sauces 50% 66%

Coffee 28% 11%

Others 36% 4%

Cost breakdown Capital Structure

Source: MSN’s FY12 financial statement & VCSC forecast

Noodle 27%

Sauces53%

Coffee15%

0%

Others5%

Raw material,

67%

Packing material,

20%

Depr., 3% Others, 10% Cash, 2

0%AR, 2%

Prepaid exp., 2%

Inventory, 1%

LT invests,

29%

Fixed Assets,

46%



HOLD What is new in this update? 1H performance

Structure simplification

Nui Phao update

Consumer update

VCSC earnings forecast

Valuation

1HFY13 performance

Revenue and profit is in line with our forecast. Due to one-time impact of liquidating inventory

at the distributor level in 1QFY13 and MSN’s restructure of consumer business by preparing

the launching of new products for its business lines, operation cost allocated within 1H

pushed up the SG&A expenses by 34.6%. Given the weak consumer demand within 1HFY13,

MSN achieved net revenue of VND4,270bn (+5.1% yoy), gross profit increased by 1.3%.

However, due to the liquidation of inventory in 1QFY13, the 1H gross margin slightly declined

to 37.9% from 39.3% in 1HFY12.

In term of pro-forma result, profit contribution from associates decline 29.6%, due to low 1H

Techcombank PBT reaching VND653bn (-60% yoy). Moreover, allocation for amortization for

Vinacafe, Proconco and Vinh Hao pushed the reported PBT in 1HFY13 at VND584bn (-55.9%

yoy) and net income to shareholder to VND136bn (-84% yoy)

Figure 1: MSN’s reported profit & pro forma profit (VND bn)

Reported P/L Pro - Forma P/L

1HFY12 1HFY13 YoY 1HFY12 1HFY13 YoY

Gain/(loss) from associates 88 (73)

374 263 -29.6%

PBT 1,325 584 -55.9% 1,695 1,013 -40.2%

NI to shareholders 849 136 -84.0% 1,182 530 -55.1%

Source: MSN’s financial statements

Structure Simplification

MSN recently simplified its financial structure and reduced the future dilution by buying back

its derivative instruments. MSN spent USD162mn to buy back CB from Richard Chandler,

two-thirds of Mount Kellet CB, and extinguished warrants for local bonds. All these

instruments, if converted, could have potentially added another 67.8mn shares to MSN’s

basic share count. Also with the conversion of P-note issued to Dragon Capital (DC) to buy

Nui Phao, there will be 29.8mn issued to DC (4.2% dilution shares to current share-

outstanding) with the reduction of USD136mn in debt at MSN group. The fully diluted share

outstanding for MSN has therefore reduced from 790mn to 747mn, which is positive for the

stock. After the simplification, capital structure will be more transparent and easier to

understand for investors.



HOLD Nui Phao Mine

Tremendous effort to bring Nui Phao into operation

With strong financial capability, MSN has successfully raised a total of USD405mn for its

projects. Bank loan accounts for USD280mn (50% of total investment), and equity accounts

USD120mn from Mount Kellet and USD105mn from MSN group. We estimate the total cost is

approximate USD572mn, excluding the USD133mn already spent prior to acquisition. With

the investments, the mine construction and operation strictly follow international standards.

Within 2 years, MSN had been able to finish the compensation and resettlement for the

construction site and mine size of 5.2km2.

MSN had signed Off-take contract for all the major metals. CMC Cometal had a commitment

to off-take up to 200,000 tons of Fluorspar per annual, up to 2000mt of Bismuth could be

bought by Sidech (Belgium based, world leading Bismuth producer). Recently, MSN had

signed off-take contract for APT product with H.C.Starck (world leading technology metal

company). The company owns 49% of JV, which owns 10,000 tons per annual capacity APT

plant, and responsible for technology and operation of the plant. H.C. Starck will internally

consume most of the final products and helps MSN to market the rest of the output. With

experience and advance technology, H.C.Starck is the right partner to help MSN capture

more within the value chain.

Figure 2: Sensitivity test on Tungsten price to revenue & profit

Tungsten price (USD/mtu)

Revenue (USDmn)

EBITDA (USDmn)

Net profit (USDmn)

300 320 145 48

325 330 154 56

350 341 164 65

375 352 173 73

400 362 183 81

425 373 193 89

450 384 202 97 Source: VCSC forecast



HOLD Masan Consumer

Successful new products fuel 2HFY13 growth

Within the coffee business segment, MSN introduced new formula for its current Wake-up

Saigon brand in national wide to target the mid-tier segment. Masan consumer also launched

Phinn, a 2-in-1 instant coffee targeting roast and ground coffee drinker.

MSN intends to increase its current market share from 20% to 30% in noodle segment by

launching a product that targets mid-tier, whose value of USD550-600mn is an approximate

55-60% value of the noodle segment. MSN expects to capture the market share from other

products within this sub-segment. MSN expects a full-scale nationwide launch by the end of

August.

MSN also launched new beverage Dohohaba, green tea product, under Vinh Hao brand in

selective distribution points. This is a first step into the beverage market. It will take a few

years to completely integrating Vinh Hao into MSN’s structure. FY13, we expect the revenue

from Vinh Hao will increase by 20%.

Proconco & beer is for long-term

Beer is very competitive market and requires good preparation in terms of product and

marketing plan. Phu Yen brewery (small capacity of 50mn liter) is MSN’s strategy to create a

stepping stone into this USD4.6bn (in FY12) market. However, this is the market of big

players and it will take longer time and significant capital investment in order to get market

share. We do not expect much revenue and profit from this production line in medium term.

In terms of Masan–Agriculture, MSN created a joint venture with TPG, in which TPG paid

USD50mn to acquire 49% of the joint venture. This JV holds 40% stake in Proconco

(Vietnam’s 2nd

largest animal feed player). With this co-operation, MSN could leverage TPG’s

expertise within the industry and capital strength for future development. It could create strong

base for MSN to grow in long-run period.

Techcombank

More provisions to come

Techcombank (TCB)’s net profit slumped by 60% yoy to VND 492bn mostly due to a surge in

provisioning. Total incomes fell 6% yoy to VND3,006bn, of which i) Net interest income

(accounting for 74% of total) decreased 20% to VND2,211bn; ii) Fee income (accounting for

12% of total) slightly reduced 2%; iii) Other non-interest incomes (accounting for 14%) soared

by 510% (mostly thanks to significant improving in securities trading/ investment, recovery in

bad debts, income from office leasing and others).

Operating expenses increased 20% yoy, which caused cost to income ratio to jump to 56% in

1HFY13 from 44% in 1HFY12 and pre-provision operating profit to decline 26% yoy.

Provision expenses soared 300% yoy to VND 670bn as NPL increased from 3% in 1HFY12 to

5% in 1HFY13. In the first six months, TCB wrote off VND551bn,continuing its policy of

cleaning the balance sheet and adopting prudent lending policies.

TCB’s loans marginally increased by 2% to VND 70tn while deposits were unchanged at VND

112tr in 1HFY13. Loan to deposit ratio stood at 63%. With the current macro environment, we

target TCB’s net profit at VND1,000bn as more NPL provision will take place in the coming

quarters.



HOLD 2H2013 Outlook

Masan Consumer still the key driver of revenue and profit

We expect strong growth in the beverage, coffee and instant noodles segment as Masan

continues to build out its distribution network, particularly in the rural areas. We estimate

instant noodle sales to grow 38% yoy and Vinacafe sales to grow 30% yoy as Masan

continues to increase market share by continuing to target the mid-tier noodle segment and

Phinn coffee for ground and roasted coffee consumer.

Also with Vinacafe’s the new roasted coffee factory, the company will be less dependent on

imported materials and take advantage of cheaper domestic coffee. We forecast gross margin

to increase to 35% in FY13 from 28% last year.

However, we expect a modest 10% growth in sauces compared to 20% growth in previous

years. The industry is now mature and Masan already has >75% market share in each

product segment.

Nui Phao mine already in operations, cash flows expected in 4QFY13

The Nui Phao mine started operations by the end of April 2013 and is currently in ramp-up

phase. It has already sold tungsten and copper concentrate, and has already started

producing sodium tungstate, the first step to producing tungsten APT. The mine will produce

Tungsten APT in the fourth quarter. We expected the mine to contribute VND758bn in

revenue for Masan in FY13 and gross profit of VND83bn. As a nature of the mining business,

it will take time to reach the optimal operation profit ratio. First year of operation will generate

more than usual cost, high depreciation expenses and interest expense.

Masan will spend another USD40-50mn in FY13 to complete the whole plant and the

remaining construction. With full year operations in FY14, the mine could contribute up to

USD352mn in revenue and USD173mn in EBITDA.

Figure 3: FY13 revenue and profit break down estimates

Source: VCSC estimates

Sauces Noodle Coffee Mining Beverage Others

Revenue 6,063 3,811 2,059 758 364 690

Gross profit 2,984 1,143 721 83 115 228

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

VN

D b

n



HOLD Valuation

Our valuation incorporates our expectation that Masan Consumer sales will grow 25% in

FY13 (expected new noodle product and 2:1 instant coffee successfully launched) and an

average of 20% for the next 5 years. We use the 50:50 weights of two valuation methods,

DCF and relative valuation with PER target of 18x of FY14’s EPS. For Techcombank, we use

a target PBR of 1.0x.

Figure 4: Sum-of-the-parts valuation (VND bn)

Method Valuation

MSN's Owner ship

MSN's Interest

Masan Consumer PER/DCF 68,512 77.4% 54,280

Nui Phao DCF 20,990 76.2% 16,235

Techcombank PBR 13,289 30.4% 4,045

Enterprise value 74,561

(-) Net debt (5,161)

(+) New Equity Issued &

Gains on Disposals

179

NAV (VND bn) 69,579

Outstanding share 705.1

NAV/ shares 99,000

Estimate fully diluted shares 747

NAV/ shares 98,000

Source: VCSC estimates



HOLD Quarterly Results Summary

VND billion

2013 1Q 2Q 3Q 4Q YTD

Revenues 1,534 2,736 na na 4,270

Gross profit 507 1,111 na na 1,619

GP margin (%) 33.1% 40.6% na na 37.5%

Operating profit -15 511.9 na na 496.8

OP margin (%) -1.0% 18.7% na na 25.8%

Net profit 1 135 na na 136

Net profit margin (%) 0.07% 4.9% na na 3.2%

2012 1Q 2Q 3Q 4Q YTD

Revenues 1,538 2,371 2,673 3,654 10,389

Gross profit 559 996 1,085 1,530 4,210

GP margin (%) 36.4% 42.0% 40.6% 41.9% 40.5%

Operating profit 222 600 510 894 2,158

OP margin (%) 14.4% 25.3% 19.1% 24.5% 20.8%

Net profit 350 558 317 136 1,261

Net profit margin (%) 22.8% 23.5% 11.9% 3.7% 12.1%

2011 1Q 2Q 3Q 4Q YTD

Revenues 1,326 1,513 1,407 2,811 7,057

Gross profit 567 613 623 1,253 3,059

GP margin (%) 42.8% 40.5% 44.3% 44.6% 43.3%

Operating profit 348 306 310 696 1,642

OP margin (%) 26.2% 20.2% 22.0% 24.8% 23.3%

Net profit 338 315 422 895 1,973

Net profit margin (%) 25.5% 20.8% 30.0% 31.8% 28.0%



HOLD Financial Statements

Actual Forecast

Actual Forecast

VND billion 2012 2013 2014 2015

VND Billion 2012 2013 2014 2015

P&L

Balance Sheet Revenue 10,389 13,745 23,848 26,831

Cash & equivalent 5,719 6,225 10,817 16,145

- Cost of goods sold -6,179 -8,471 -14,270 -16,088

Short-term invest. 1,841 1,841 1,841 1,841

Gross profit 4,210 5,274 9,578 10,743

Accounts receivable 121 202 351 394

- Sales & marketing -1,325 -1,814 -2,385 -2,683

Inventories 564 804 1,355 1,527

- General & admin -728 -837 -920 -1,012

Other current assets 977 977 977 977

Operating profit 2,158 2,623 6,273 7,048

Total current assets 9,221 10,049 15,340 20,884

- Forex gain/loss 8 0 0 0

Gross fix assets 17,487 20,901 22,144 23,392

- Net non-op gains 602 575 660 863

- Acc. depreciation -493 -1,653 -3,566 -5,604

EBIT 2,768 3,198 6,933 7,911

Net fixed assets 16,994 19,248 18,578 17,788

- Interest expense -279 -325 -1,059 -964

LT investments 389 803 803 803

EBT 2,489 2,872 5,874 6,946

Other LT assets 12,096 9,806 10,317 10,882

- Income tax -526 -607 -1,241 -1,468

Total long-term assets 29,478 29,857 29,698 29,473

Profit after tax 1,963 2,265 4,633 5,478

Total Assets 38,699 39,906 45,038 50,357

- Minority interests -702 -1,133 -2,316 -2,739

Net income to SH 1,261 1,133 2,316 2,739

Accounts payable 974 939 1,582 1,784

Short-term debt 1,793 3,640 1,946 8,162

EBITDA 2,958 4,192 8,847 9,948

Other ST debt 1,981 2,621 4,548 5,116

Out. shares (m) 678 705 705 705

Current liabilities 4,748 7,200 8,076 15,061

EPS 1,776 1,607 3,285 3,885

Long-term debt 12,647 12,376 12,000 4,856

Other LT debt 1,599 1,599 1,599 1,599

Growth

Total long-term debt 14,247 13,976 13,599 6,455

Revenue growth % 47.2 32.3 73.5 12.5

Total liabilities 18,995 21,767 21,675 21,516

Op profit growth % 31.4 21.5 139.2 12.4

Preferred equity 0 0 0 0

EBIT growth % -13.1 15.5 116.8 14.1

Paid in capital 7,999 7,999 7,999 7,999

EPS growth % -38.9 -22.4 101.9 18.3

Others equity 6,873 7,051 7,051 7,051

Retained earnings -988 -3,274 -957 1,782

Profitability

Minority interest 5,821 6,953 9,269 12,009

Gross margin % 40.5 38.4 40.2 40.0

Total equity 19,704 18,730 23,363 28,841

Net profit margin % 18.9 16.5 19.4 20.4

Total debt & equity 38,699 39,906 45,038 50,357

ROE % 9.5 11.8 22.0 21.0

ROA % 5.4 5.8 10.9 11.5

Cash flow

Begin cash balance 9,574 5,719 6,225 10,817

Efficiency

Net Income 1,261 1,133 2,316 2,739

Days inventory OH 34.8 29.5 27.6 32.7

Depreciation 350 995 1,913 2,038

Days acts. receivable 5.5 4.3 4.2 5.1

∆ in working capital 787 657 1,311 1,568

Days acts. payables 41.3 41.2 32.2 38.2

Other adjustments 398 686 1,760 564

Cash conversion -1.0 -7.5 -0.4 -0.4

Cash from operation 2,795 4,115 8,528 8,410

Net Capex -5,785 -2,514 -1,243 -1,248

Liquidity

Other investments -5,054 1,140 -511 -566

Current ratio 1.94 1.40 1.90 1.39

Cash from invest -10,837 -1,373 -1,754 -1,813

Quick ratio 1.82 1.28 1.73 1.29

Dividends paid 0 0 0 0

Cash ratio 1.20 0.86 1.34 1.07

∆ in capital 0 0 0 0

Debt/assets 37% 40% 31% 26%

∆ in LT & ST debt 4,987 -1,842 -2,070 -929

Debt/capital 42% 46% 37% 31%

Cash from financing 4,187 -1,664 -2,070 -929

Debt/equity 73% 86% 60% 45%

Net changes in cash -3,855 507 4,592 5,327

Interest coverage 9.91 9.83 6.55 8.20

End cash balance 5,719 6,225 10,817 16,145



HOLD Analyst Certification I, Anh Nguyen, hereby certify that the views expressed in this report accurately reflect my personal views about the

subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly,

related to the specific recommendations or views expressed in this report. The equity research analysts responsible

for the preparation of this report receive compensation based upon various factors, including the quality and accuracy

of research, client feedback, competitive factors, and overall firm revenues, which include revenues from, among

other business units, Institutional Equities and Investment Banking.

VCSC Rating System and Valuation Methodology

Absolute performance, long term (fundamental) rating key: The recommendation is based on implied absolute

upside/downside for the stock from the target price, defined as (target price – current price)/current price, and is not

related to market performance. This structure applies from 1 November 2010.

Equity rating key Definition

BUY If the target price is 20% higher than the market price

ADD If the target price is 10-20% higher than the market price

HOLD If the target price is 10% below or 10% above the market price

REDUCE If the target price is 10-20% lower than the market price

SELL If the target price is 20% lower than the market price

NOT RATED The company is or may be covered by the Research Department but no rating or

target price is assigned either voluntarily or to comply with applicable regulation

and/or firm policies in certain circumstances, including when VCSC is acting in an

advisory capacity in a merger or strategic transaction involving the company.

RATING SUSPENDED The investment rating and target price for this stock have been suspended as there is

not a sufficient fundamental basis for determining an investment rating or target. The

previous investment rating and target price, if any, are no longer in effect for this

stock.

Unless otherwise specified, these performance parameters only reflect capital appreciation and are set with a 12-

month horizon. Future price volatility may cause temporary mismatch between upside/downside for a stock based on

market price and the formal recommendation, thus these performance parameters should be interpreted flexibly.

Small Cap Research: VCSC Research covers companies with a market capitalisation of up to US$50mn, inclusively.

Clients should note that coverage may not be consistent and that VCSC may drop coverage of small caps at any time

without notice.

Target price: In most cases, the target price will equal the analyst's assessment of the current fair value of the stock.

The target price is the level the stock should currently trade at if the market were to accept the analyst's view of the

stock, provided the necessary catalysts were in place to effect this change in perception within the performance

horizon. However, if the analyst doesn't think the market will reassess the stock over the specified time horizon due

to a lack of events or catalysts, then the target price may differ from fair value. In most cases, therefore, our

recommendation is an assessment of the mismatch between current market price and our assessment of current fair

value.

Valuation Methodology: To derive the target price, the analyst may use different valuation methods, including, but

not limited to, discounted free cash-flow and comparative analysis. The selection of methods depends on the

industry, the company, the nature of the stock and other circumstances. Company valuations are based on a single

or a combination of one of the following valuation methods: 1) Multiple-based models (P/E, P/cash flow, EV/sales,

EV/EBIT, EV/EBITA, EV/EBITDA), peer-group comparisons, and historical valuation approaches; 2) Discount

models (DCF, DVMA, DDM); 3) Break-up value approaches or asset-based evaluation methods; and 4) Economic

profit approaches (Residual Income, EVA). Valuation models are dependent on macroeconomic factors, such as

GDP growth, interest rates, exchange rates, raw materials, on other assumptions about the economy, as well as risks

inherent to the company under review. Furthermore, market sentiment may affect the valuation of companies.

Valuations are also based on expectations that might change rapidly and without notice, depending on developments

specific to individual industries.

Risks: Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may

adversely affect the value, price or income of any security or related instrument mentioned in this report. For

investment advice, trade execution or other enquiries, clients should contact their local sales representative.



HOLD Contacts Head office

Bitexco 15th

Floor, 2 Hai Trieu, District 1, HCMC

+84 8 3914 3588

Transaction office

136 Ham Nghi, District 1, HCMC

+84 8 3914 3588

Hanoi branch

109 Tran Hung Dao, Hoan Kiem District, Hanoi

+84 4 6262 6999

Transaction office

236 - 238 Nguyen Cong Tru, District 1, HCMC

+84 8 3914 3588

Research

Senior Manager

Ms. Phuong Ton, ext 146 [email protected]

Senior Analyst, Ms. Hoa Dinh, ext 140

Senior Analyst, Mr. Huy Nguyen, ext 139

Senior Analyst, Mr. Anh Nguyen, ext 194

Senior Analyst, Ms.Van Ngo, ext 130

Research Team

+84 8 3914 3588 [email protected]

Analyst, Ms. Ly Vu, ext 147

Analyst, Mr. Dinh Nguyen, ext 149

Analyst, Ms. Trang Nguyen, ext 116

Analyst, Mr. Phap Dang, ext143

Macro Analyst, Mr. Phong Nguyen, ext 120

Technical Analyst, Mr. Minh Nguyen, ext 142

Institutional Sales & Brokerage & Foreign Individuals

Head of Institutional Sales

Michel Tosto, M.Sc. +84 8 3914 3588, ext 102 [email protected]

Vietnamese Sales

Nguyen Quoc Dung +84 8 3914 3588, ext 136 [email protected]

Retail & Corporate Sales & Brokerage

Ho Chi Minh City

Quynh Chau +84 8 3914 3588, ext 222 [email protected]

Hanoi

Quang Nguyen +84 4 6262 6999, ext 312 [email protected]

Disclaimer

Copyright 2012 Viet Capital Securities Company. All rights reserved. This report has been prepared on the basis of

information believed to be reliable at the time of publication. VCSC makes no representation or warranty regarding

the completeness and accuracy of such information. Opinions, estimates and projection expressed in this report

represent the current views of the author at the date of publication only. They do not necessarily reflect the opinions

of VCSC and are subject to change without notice. This report is provided, for information purposes only, to

institutional investor and retail clients of VCSC, and does not constitute an offer or solicitation to buy or sell any

securities discussed herein in any jurisdiction. Investors must make their investment decisions based upon

independent advice subject to their particular financial situation and investment objectives. This report may not be

copied, reproduced, published or redistributed by any person for any purpose without the written permission of an

authorized representative of VCSC. Please cite sources when quoting.

History of Recommendation Date Recommendation Closing price Target price

06 September 2013 BUY 82,000 98,000

26 December 2012 HOLD 102,000 100,000

26 September 2012 HOLD 98,000 106,000









HOLD Disclaimer

Analyst Certification of Independence

I, Anh Nguyen, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities

or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific

recommendations or views expressed in this report. The equity research analysts responsible for the preparation of this report receive

compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and

overall firm revenues, which include revenues from, among other business units, Institutional Equities and Investment Banking.

VCSCand its officers, directors and employees may have positions in any securities mentioned in this document (or in any

related investment) and may from time to time add to or dispose of any such securities (or investment).VCSC may have, within the

last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in

issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months,

significant advice or investment services in relation to the investment concerned or a related investment.

Copyright 2013 Viet Capital Securities Company “VCSC”. All rights reserved. This report has been prepared on the basis of

information believed to be reliable at the time of publication. VCSC makes no representation or warranty regarding the completeness

and accuracy of such information. Opinions, estimates and projection expressed in this report represent the current views of the

author at the date of publication only. They do not necessarily reflect the opinions of VCSC and are subject to change without notice.

This report is provided, for information purposes only, to institutional investors and retail clients of VCSC in Vietnam and overseas in

accordance to relevant laws and regulations explicit to the country where this report is distributed, and does not constitute an offer or

solicitation to buy or sell any securities discussed herein in any jurisdiction. Investors must make their investment decisions based

upon independent advice subject to their particular financial situation and investment objectives. This report may not be copied,

reproduced, published or redistributed by any person for any purpose without the written permission of an authorized representative of

VCSC. Please cite sources when quoting.

U.K. and European Economic Area (EEA): Unless specified to the contrary, issued and approved for distribution in the U.K. and the

EEA by VCSC issued by VCSC has been prepared in accordance with VCSC’s policies for managing conflicts of interest arising as a

result of publication and distribution of investment research. Many European regulators require a firm to establish, implement and

maintain such a policy. This report has been issued in the U.K. only to persons of a kind described in Article 19 (5), 38, 47 and 49 of

the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (all such persons being referred to as "relevant

persons"). This document must not be acted on or relied on by persons who are not relevant persons. Any investment or investment

activity to which this document relates is only available to relevant persons and will be engaged in only with relevant persons. In other

EEA countries, the report has been issued to persons regarded as professional investors (or equivalent) in their home jurisdiction.

Australia: This material is issued and distributed by VCSC in Australia to "wholesale clients" only. VCSC does not issue or distribute

this material to "retail clients". The recipient of this material must not distribute it to any third party or outside Australia without the prior

written consent of VCSC. For the purposes of this paragraph the terms "wholesale client" and "retail client" have the meanings given

to them in section 761G of the Corporations Act 2001. Hong Kong: The 1% ownership disclosure as of the previous month end

satisfies the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with

the Securities and Futures Commission. (For research published within the first ten days of the month, the disclosure may be based

on the month end data from two months prior.) Japan: There is a risk that a loss may occur due to a change in the price of the shares

in the case of share trading, and that a loss may occur due to the exchange rate in the case of foreign share trading. In the case of

share trading, VCSC will be receiving a brokerage fee and consumption tax (shouhizei) calculated by multiplying the executed price

by the commission rate which was individually agreed between VCSC and the customer in advance. Korea: This report may have

been edited or contributed to from time to time by affiliates of VCSC. Singapore: VCSC and/or its affiliates may have a holding in any

of the securities discussed in this report; for securities where the holding is 1% or greater, the specific holding is disclosed in the

Important Disclosures section above. India: For private circulation only, not for sale.Pakistan: For private circulation only, not for

sale.New Zealand: This material is issued and distributed by VCSC in New Zealand only to persons whose principal business is the

investment of money or who, in the course of and for the purposes of their business, habitually invest money. VCSC does not issue or

distribute this material to members of "the public" as determined in accordance with section 3 of the Securities Act 1978. The recipient

of this material must not distribute it to any third party or outside New Zealand without the prior written consent of VCSC. Canada:

The information contained herein is not, and under no circumstances is to be construed as, a prospectus, an advertisement, a public

offering, an offer to sell securities described herein, or solicitation of an offer to buy securities described herein, in Canada or any

province or territory thereof. Any offer or sale of the securities described herein in Canada will be made only under an exemption from

the requirements to file a prospectus with the relevant Canadian securities regulators and only by a dealer properly registered under

applicable securities laws or, alternatively, pursuant to an exemption from the dealer registration requirement in the relevant province

or territory of Canada in which such offer or sale is made. The information contained herein is under no circumstances to be construed

as investment advice in any province or territory of Canada and is not tailored to the needs of the recipient. To the extent that the

information contained herein references securities of an issuer incorporated, formed or created under the laws of Canada or a

province or territory of Canada, any trades in such securities must be conducted through a dealer registered in Canada. No securities

commission or similar regulatory authority in Canada has reviewed or in any way passed judgment upon these materials, the

information contained herein or the merits of the securities described herein, and any representation to the contrary is an offence.

Dubai: This report has been issued to persons regarded as professional clients as defined under the DFSA rules. United States: This

research report prepared by VCSC is distributed in the United States to Major US Institutional Investors (as defined in Rule 15a-6

under the Securities Exchange Act of 1934, as amended) only by Decker&Co, LLC, a broker-dealer registered in the US (registered

under Section 15 of Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Decker&Co,

LLC in the US shall be borne by Decker&Co, LLC. All resulting transactions by a US person or entity should be effected through a

registered broker-dealer in the US. This report is not directed at you if VCSC Broker or Decker&Co, LLC is prohibited or restricted by

any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that

Decker&Co, LLC and VCSC is permitted to provide research material concerning investment to you under relevant legislation and

regulations.

Masan Group Corp (MSN) BUY · the fully diluted share count has dropped from 790mn to 747mn, reducing risk. 1H performance dragged by Techcombank – Net revenues slightly increased

Documents