- MSN released its H1 2022 results, including revenue of VND36.0tn (USD1.6n; -13% YoY) and NPAT-MI of VND2.6tn (USD112mn; +163% YoY). Revenue was mainly dragged by the deconsolidation of the feed segment in November 2021. Excluding the feed segment, like-for-like (LFL) revenue growth was 9% YoY in H1 2022, which was driven by 33% revenue growth at Masan High-Tech Materials (MHT) and high-single digit growth at Masan Consumer Holdings (MCH). Furthermore, MSN recorded one-off financial income in H1 2022. Excluding (1) this one-off gain and (2) contribution from the feed segment in H1 2021, NPAT-MI still surged 214% YoY on a LFL basis, which we attribute to (1) operating leverage obtained from increased sales from MHT (18% gross margin in H1 2022), and MCH (40% gross margin in H1 2022), in addition to (2) WinCommerce’s (WCM) improved profitability.

- Despite the revenue decline, WCM contributed to MSN’s bottom-line improvement as its profitability improved in H1 2022 on the back of a more effective product assortment and targeted promotions.

- H1 2022 results are broadly in line with our expectations — pending a more extensive review — as revenue and recurring NPAT-MI completed 40% and 41% of our respective full-year forecasts. We believe MSN’s profits will increase in future quarters as MCH’s quarterly revenue typically ramps up in the second half of the year.