Masan MEATLife’s value could exceed $1 billion thanks to recent mega deal

Recent merger deal between two Vietnamese conglomerates Vingroup and Masan could boost value of Masan MEATLife to over $1 billion upon exchange listing.

Masan’s meat unit is scheduled to have over 324.3 million shares traded on unlisted market from December 9th at VND80,000 ($3.48) a piece.

This could be a right time for the listing. Pork shortage in domestic market and increasing meat demand during approaching Lunar New Year could be among advantages of the MML shares’ listing.

The recent absorption of VinCommerce could help boosting value of Masan Group’s branded meat arm to increase thanks to wider retail system in local market.

By acquiring VinMart and VinMart + retail system, Masan MEATLife’s products will be available in an additional 3,072 stores nationwide, bringing total stores selling Masan’s meat to 3,503 stores.

In just one night, the company could achieve the number of stores that had been targeted for 2021, Masan said. 

It is expected that additional revenue of branded meat under the distribution network of VinMart and VinMart + to reach $105 million. With processed meat, the additional revenue could be much higher, according to statement from Masan Group.

Currently, Masan’s branded meat accounts for 60% market share in VinMart stores in Hanoi and about 15% in Ho Chi Minh City-based VinMart stores. The company sees huge potential of meat and processed meat at the supermarket and minimart systems.

Masan MEATLife strives to become a leader in meat sector while the $10-domestic pork market has no leader and most of pork sold in the market are cooled and packaged meat.

The company plans to get 10% market share with revenue of $1.5-3 billion in 2022, when it plans to have 5,000 stores and 200,000 selling points. After-tax profit is expected at around $200-450 million.

During the first three quarters of 2019, Masan MEATLife reported over $439.3 million in revenue and $14 million in after-tax profit.

PPV 2019 OVERVIEW

10 July, 2019