Masan: Q226 briefing: Management confident on growth and deleveraging

Research evidence excerpt

Masan: Q226 briefing: Management confident on growth and deleveraging

as a multi-year structural growth driver and highlighted Retail Supreme as the key

12/27E 6,125.53 6,033.01

engine for future market-share gains and margin expansion. While ongoing investments 12/28E 8,176.44 7,715.47

in branding and new product development continue to temper near-term earnings

leverage, management suggested the platform is still in the early stages of monetization Alex Manoonpol

and expects profit growth to better align with revenue growth from 2027 onward. Analyst

alex.manoonpol@ubs.com

+662-613 5770

Tungsten outlook remains the key upside driver for group earnings

Management believes elevated tungsten prices are supported by structural demand Permada Darmono

Analystdrivers including AI infrastructure, data-center investments and defense applications,

permada.darmono@ubs.com

and hence Q3 should be better than Q2. Management views MHT as a global non-China +65-6495 3137

tungsten refining platform rather than simply a mining company, noting that the vast

majority of feedstock processed this year originates from third-party mines and that Trang Nguyen

Analyst

partnerships now span approximately 20 global suppliers. Looking longer term, the

trang-za.nguyen@ubs.com

newly awarded Nui Chiem project together with Nui Phao expansion could extend mine +65-6495 2495

life by 20-30 years. Reflecting the stronger earnings trajectory, management now

expects MHT's net debt/EBITDA to fall below 1x by year-end (vs prior guidance of 1.7x),

and reiterated ambitions to become net-cash and a meaningful dividend-paying

company from 2027 onwards.

Valuation: SOTP-based price target of D105,000; maintain Buy

We intend to revisit our estimates in due course.