Moc Chau Milk shares listed on UpCom

So, up to this point there are only 2 companies.dairy industryVietnam's official stock exchange isVinamilk(stock code VNM) and Moc Chau Milk (stock code MCM).

Leaders of Hanoi Stock Exchange awarded the trading registration certificate to the General Director of Moc Chau Milk Company. Photo: PV

In the first trading session, Moc Chau Milk registered to list all 66.8 million MCM shares with a reference price of 30,000 VND/share. As soon as the market opened, MCM price increased to the ceiling price of 42,000 VND/share with a purchase volume of more than 7 million units.

Speaking at the ceremony, Mr. Pham Hai Nam - General Director of Moc Chau Milk Company said: “The official listing of shares with the stock code MCM is an important event marking the maturity of the company's business and governance. In just under 1 year with the participation of Vinamilk, Moc Chau MilkSatisfiedincreasingly perfected with advanced models of corporate governance, practicing according to Vietnamese and international practices. It can be said that this is the result of persistent and steadfast efforts with the goal of building the Company towards openness, transparency and sustainable, comprehensive development.

General Director of Moc Chau Milk Company performs the gong-beating ceremony, officially opening MCM stock trading on UPCOM. Photo: PV

In 2020, Moc Chau Milk recorded significant growth with clearly improved operating efficiency. In the third quarter of 2020, the company's net revenue increased by 14%, gross profit margin reached 34.6%, a sharp improvement compared to 18-19% in previous years. In the first 9 months of 2020, Moc Chau Milk's revenue increased by nearly 10% to VND 2,142 billion, profit after tax increased by 69% over the same period and exceeded the yearly plan by 33%.

This result comes from a suitable business strategy, cost optimization, effective management, restructuring of the distributor system and prioritizing the development of milk raw material areas. In 2020, the Company expects to pay the state budget about 211 billion VND, an increase of 33% compared to 158 billion VND in 2019.

The event of MCM shares officially being listed on the stock exchange also shows Vinamilk's determination and commitment to develop Moc Chau Milk alongside Vinamilk in accordance with the motto of openness and transparency in the operation process. The positive results of Moc Chau Milk after only nearly 1 year have shown more clearly Vinamilk's successful M&A strategy based on consensus, cooperation for mutual development and increased economic value for all shareholders as well as related parties.

Moc Chau (Son La) is oriented to become the high-tech dairy capital of Vietnam. Photo: PV

To improve production capacity to meet the expanding market demand, Vinamilk and Moc Chau Milk are investing in a modern fresh milk production line at Moc Chau Milk Factory, expanding the herd size at Moc Chau Milk's existing farm from 1,600 to 6,000 cows (including upgrading the existing farm to 2,000 cows and investing in a 4,000 cow dairy farm combined with eco-tourism). The farms are oriented towards international standards in dairy management and farming.

Vinamilk and Moc Chau Milk have built a development strategy for the 2020-2025 period, with a vision to 2030, aiming to turn Moc Chau (Son La) into the high-tech dairy capital of Vietnam, combining agriculture with eco-tourism to create jobs for ethnic farmers, develop agriculture in a sustainable direction and contribute revenue to the local budget.

Sterilized fresh milk production line at Moc Chau Milk Factory. Photo: PV

This strategy focuses on nearly doubling the size of the dairy herd, to over 40,000 by 2025, with raw milk output reaching over 500 tons/day. Vinamilk and Moc Chau Milk will continue to promote the successes of the farmer-linked model, while supporting farmers in applying scientific and technical advances to improve the productivity and milk quality of the herd. In addition, Moc Chau Milk will develop a complex of high-tech dairy farm projects, meeting international standards, combined with eco-tourism. At the same time, it plans to build a new, modern milk processing factory on the Moc Chau plateau with a total investment of over 1,600 billion VND.

These strategic plans are expected to maximize the potential of Moc Chau Milk as well as Moc Chau Plateau (Son La) in dairy farming, thereby forming an international standard milk material area, bringing domestic and foreign consumers many quality products. The rapid and steady progress in recent times has shown the right direction of Vinamilk and Moc Chau Milk in bringing this milk brand with a history of more than 60 years to a new level, as well as preparing for the period of economic recovery and deep integration into the world economy of Vietnam.