As a leading enterprise in the agricultural sector, Nova Consumer has entered the consumer market with a solid foundation supported by the NovaGroup ecosystem, expecting to bring Nova Consumer outstanding growth in market share, revenue and profit.

Mr. Nguyen Hieu Liem - Chairman of the Board of Directors of Nova Consumer shared at the Nova Consumer stock introduction ceremony held on the afternoon of February 22, 2022

On February 22 at Novaland Gallery - (2Bis Nguyen Thi Minh Khai, District 1, Ho Chi Minh City), Nova Consumer held a seminar introducing Nova Consumer shares - Potential and investment opportunities with the participation of many investors.

Through the workshop, Nova Consumer's board of directors answered investors' questions and introduced Nova Consumer's development strategy to quickly gain market share in the consumer goods market, soon reach a revenue of 1 billion USD, and a capitalization exceeding 1 billion USD in the next 3 years, bringing financial efficiency to investors.

Taking advantage of NovaGroup's ecosystem to accelerate

After being licensed by the State Securities Commission, Nova Consumer is conducting an initial public offering. In this IPO, Nova Consumer will offer 10.9 million shares with an expected capital mobilization of about 430 billion VND, used to buy back shares of Rising Sun Food Company Limited with the ambition of taking advantage of existing advantages to quickly enter the fast-moving consumer goods market.

This M&A deal will help Nova Consumer own a widespread distribution network with 80,000 points of sale and aim to increase the number of points of sale to 250,000. At the same time, Nova Consumer also aims to increase its profit in the 2022-2026 period by 4-5 times, reaching VND 1,300-1,500 billion, with a target capitalization exceeding USD 1 billion in the next 3 years.

Speaking at the conference, Mr. Nguyen Hieu Liem - Chairman of the Board of Directors of Nova Consumer - said that after 30 years of establishment and development, Nova Consumer has become one of the key members of NovaGroup and a leading enterprise in the agricultural sector.

Regarding the reason for entering the consumer goods industry, Mr. Liem cited data from market analysis reports showing the development potential of this industry, in which Vietnam will have 17 million middle-class households by 2030, expected to be the 3rd largest market in terms of consumers and the 5th largest in Southeast Asia by 2030.

According to Mr. Liem, Vietnam will witness strong growth in the consumer goods industry with an average annual food spending rate in the period 2020-2024 reaching 11.3%. Therefore, Mr. Liem said that Nova Consumer is completely confident and has the basis to succeed in this new segment.

In particular, Nova Consumer's success is even more solid when NovaGroup's diverse ecosystem is developing rapidly in the fields of urban real estate, tourism, trade, services... this will be a sustainable market for Nova Consumer's consumer products.

Nova Consumer's representative said that despite challenging market conditions, Nova Consumer's profit margin and gross profit margin have still improved. For example, in 2021, the pandemic had a severe impact, but Nova Consumer still decided to improve business efficiency, leading to unexpected results last year when profits skyrocketed.

In addition, he also said that Nova Consumer's financial structure is healthy with an optimal debt ratio to serve investment and business expansion needs. In particular, the return on assets ratio reached over 8%, the return on equity ratio reached nearly 15%. These are "great numbers" for investors interested in financial indicators.

Mr. Ton That De - General Director of Nova Consumer shared at the Nova Consumer Stock Introduction

Nova Consumer has many growth opportunities

Evaluating the potential and attractiveness of Nova Consumer shares, Ms. Hoang Viet Phuong - Director of the Center for Analysis and Investment Consulting (SSI Securities Company) - said that Nova Consumer is a leading enterprise in the field of veterinary medicine and animal health care solutions. With a 30% market share in domestic veterinary medicine, 3 factories with WHO-GMP certification and strong R&D capacity...

Nova Consumer possesses very strong advantages compared to its competitors. In addition, Ms. Phuong also said that the company also has other advantages such as large animal feed capacity, room for development, long-term partners, customers, and a large distribution network... Furthermore, Nova Consumer also has advantages as a member of NovaGroup to take advantage of resources, creating synergistic values with other companies in the group.

"The Vietnamese consumer goods market is promising with favorable demographic factors, Nova Consumer has the opportunity to grow in this industry through M&A and organic growth in the coming time" - Ms. Phuong said.

In addition, Ms. Phuong also said that Nova Consumer also has the advantage of an experienced management team, an important factor to steer the company to achieve future growth.

However, Ms. Phuong also warned of some risks when investing in Nova Consumer's shares, in which the common risks when investing in the agricultural sector are fluctuations in raw material prices, livestock costs, diseases, etc. In addition, there are also risks of completing the business plan, especially the new business segment in the consumer goods industry due to fierce competition from competitors.

"SSI estimates Nova Consumer's 2021-2026 net profit growth at 26.8%/year. In terms of valuation, the 2022 P/E ratio at the IPO starting price is 19.1x and EV/Ebitda is at 10.2x, based on SSI's estimates. 2022 is the first year the company expands into the consumer goods segment, so revenue and profit have not contributed much, but if the company achieves the growth rate as forecasted by us, the valuation will be much more attractive in the coming years" - Ms. Phuong commented.

Meanwhile, Mr. Nguyen The An - Director of Financial Institution Relations of NovaGroup - said that the values of the NovaGroup ecosystem will support Nova Consumer well in transforming itself from a leading agricultural group to a consumer goods company, quickly dominating the market, achieving breakthrough growth, and aiming for a billion-dollar capitalization in the near future.

Mr. Nguyen The An - Director of Financial Institution Relations NovaGroup at the event answered questions from investors

According to Mr. An, in addition to human resource support, NovaGroup also has experience working with many large financial institutions, so financial resources will be brought in by NovaGroup and shared with Nova Consumer to ensure the company achieves its goals, including the target of capitalization of 1 billion USD in the coming years.

Evaluating the minimum offering price of VND 43,462/share, Mr. An said that this is a relatively attractive valuation, investors participating at this early IPO time will still have a lot of potential for investors to make a profit.

Share more, Mr. An said that the company has received attention from investors, in which the company is currently working with 2 international investment funds, the number of orders from these 2 funds has exceeded 2 times the number of shares the company offered. In addition, the company has received many registrations and deposits from investors, so Mr. An said that the price offered by this company per share is appropriate and has a lot of potential for investment.

See instructions for ordering Nova Consumer shares and other information here