We attended MSN’s AGM on April 24, during which discussion mainly focused on the company’s business execution in 2023. Our key takeaways are as follows.

Masan Consumer Holdings (MCH): MCH expects to launch new products starting in late-Q2 2023. Additionally, MCH plans to build global brand equity for Chinsu, Omachi and Vinacafe in 2023. Management expects global markets will contribute 15% to MCH’s sales in 2027. In Q1 2023, MCH’s revenue was ~VND7.5tn (USD318mn; +16% YoY), completing 24% of our full-year forecast and in line with our expectation. Management expects MCH’s revenue and net profit to rise ~20% YoY and ~25% YoY, respectively, in H1 2023. If this is realized, then we believe this result will be outstanding among FMCG players amid weak consumer spending so far this year.

WinCommerce (WCM): Apart WCM’s existing owned stores network, WCM plans to partner with other general trade retailers under the brand WIN+ (via a franchising business model) to expand its presence; a detailed plan for this has not been finalized. Regarding the expansion plan, the combined number of new Winmart+ and WIN stores is expected to be 4,400 (+1,132 stores YoY) by YE2023, of which 3,400 are WinMart+ urban, 800 are WinMart+ rural and 200 are WIN stores. On the other hand, management only plans to open 30 new WinMart supermarkets in 2023. In terms of its membership program, the number of registered WIN membership accounts is currently four million (vs 600,000 in January 2023), of which two million are monthly active members1 (vs 200,000 in January 2023). Management targets the total number of registered WIN members to be 10 million by YE2023 and 30 million by YE2025. In Q1 2023, WCM experienced a better performance in Hanoi vs HCMC. The total number of bills in Hanoi increased 10.1% YoY for WIN stores and 5.5% YoY for WinMart+/WinMart supermarket stores vs 5.9% YoY and -2.8% YoY in HCMC, respectively. We partly attribute this result to the significantly higher percentage of enterprises in southern Vietnam (87% as YE2022, according to the General Confederation of Labor) that were affected by declines in export orders.

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