What to expect from MCM's move to HoSE?

HoSE specifically approved the listing of 110 million MCM shares, which are presently trading on the UpCOM platform. The entire value of the listed shares (by face value) is VND 1.1 trillion, which represents the company's charter capital at the moment of approval.

MCM was founded in 1958 as the Moc Chau Military Farm, which focused on dairy cow breeding, dairy cattle supply, dairy product production, and animal feed manufacture.

Moc Chau Milk was converted from a state-owned enterprise to a joint stock company in 2005 under the Ministry of Agriculture and Rural Development's Decision No. 3306/QD/BNN-TTCB dated 28/09/2004, with a charter capital of VND 7.1 billion at the time of privatization, with the Vietnam Livestock Corporation (a 100% state-owned enterprise at the time) owning 51% of it.

On December 19, 2019, Vietnam Dairy Products Joint Stock business (Vinamilk) declared that it controlled 75% of the charter capital of GTNfoods Corporation, Moc Chau Milk's parent business at the time, establishing Moc Chau Milk as an official member of Vinamilk. Joining Vinamilk's system of member units has given Moc Chau Milk benefits in governance, finance, technology, and distribution networks, allowing it to grow and develop more completely.

MCM shares began trading on the UpCOM platform in December 2020, with the stock symbol MCM. As of March 31, 2024, the Vietnam Livestock Corporation was MCM's largest stakeholder, owning 59.3% of the company's charter capital, followed by Vinamilk, which owned 8.85% of MCM's charter capital.

MCM presently owns around 2.7% of the national dairy market share. MCM is projected to dominate around 18% of the Northern market, with product lines including fresh milk and sterilized yogurt under the Moc Chau brand.

In terms of business outcomes, MCM generated more than VND 625 billion in net revenue by the end of the first quarter of 2024, representing a 15% reduction from the same time in 2023. After-tax profit was roughly VND 50 billion, a reduction of about 51% from the same time previous year.

MCM noted that the decline in sales revenue compared to the same time in 2023 was caused by the severe economic conditions in Q1/2024, which led to lower consumer spending. In addition, financial revenue reduced over the period as bank interest rates fell.

MCM has set a business objective for 2024 of over VND 3.367 trillion in sales, a 7.4% increase over the previous year. After-tax earnings is estimated to be VND 331.7 billion, a 11.4% reduction from 2023.

MCM's Board of Directors feels that, despite the fact that the economy and consumer spending are expected to improve in 2024, the firm has set a reduced profit target due to increasing investment in sales systems and marketing. Furthermore, financial operation revenues have fallen due to reduced deposit sources and interest rates.

MCM's key goal for 2024 and subsequent years is to control the Vietnamese dairy business and become the most popular brand in people' hearts. It attempts to improve financial management responsibly and continually, with a focus on revenue and profit.

MCM's leadership stated in the 2023 annual report that the dairy business in Vietnam still has space to expand due to rising average incomes and population sizes. These factors are projected to raise demand for dairy products, particularly health-care items, following the pandemic.

Furthermore, Vietnam's per capita milk consumption remains lower than other nations in the area, with only 27 liters per person per year, compared to 50 liters in China, 45 liters in Singapore, and 40 liters in South Korea.

According to Euromonitor, milk and dairy product consumption in Vietnam is predicted to increase at a 9.3% annual pace from 2020 to 2024, reaching 3.05 million tons by 2024. The yogurt sector is predicted to expand the most, at 12% per year. These aspects present growth opportunities for MCM," MCM's leadership evaluates.