CEO Masan High-Tech Materials (MSR) revealed the potential for cooperation in battery production for VinFast, aiming to reach VND 18,200 billion in revenue in 2023.

On April 18, 2023, Masan High-Tech Materials Joint Stock Company (MHT, UpCOM: MSR) held the Annual General Meeting of Shareholders in 2023.

At the congress, Mr. Craig Richard Bradshaw, General Director of Masan High-Tech Materials said : “Masan High-Tech Materials has experienced a challenging year in business, overcoming market fluctuations and the influence of other industries. regional and global factors . Tungsten revenue as well as Tungsten scrap recycling rate both increased, contributing to the record of revenue in 2022.”

In 2022, thanks to the continued strong increase in the demand and price of Tungsten products, Masan High-Tech Materials achieved a record revenue of VND 15,550 billion, an increase of VND 1,985 billion (up 15%) compared to the fiscal year 2021.

Tungsten sales increased 13%, of which 70% came from deep-rooted Tungsten products – Tungsten Carbide and Tungsten Powders of HC Starck Tungsten Powders, a subsidiary of Germany-based Masan High-Tech Materials (HC Starck). ). Profit before interest, depreciation and tax (EBITDA) increased by 5% to VND 3,203 billion – the second highest EBITDA ever.

Based on the results of content control drilling carried out at Nui Phao in 2020 and 2021, the Company can significantly increase the reserve compared to the calculated reserve in 2019 according to the JORC mineral reserve standard (Committee) Federation of Ore Reserves of Australia). As of November 2022, there are still 44.1 million tons of ore that can be mined and processed, extending the mine life by 12 years.

Tungsten production from HC Starck’s recycling operations increased 13%. The company focuses on increasing output from secondary supply (scrap recycling), in line with Masan High-Tech Materials’ strategic direction of “reduce, reuse and recycle”.

In 2022, Masan High-Tech Materials established a Global Innovation Center on the basis of 2 research and development centers in Goslar (Germany) and Thai Nguyen (Vietnam), obtaining 95 new patents worldwide. world and 50 other patents are in the application stage.

For 2022, Masan High-Tech Materials has partnered with the Baden-Wurttemberg (ZSW) German Research Center for Solar & Hydrogen Energy and signed an agreement to invest £45 million in Nyobolt Limited, a company specializing in the supply of solar energy. provides UK-based fast-charging Li-ion battery solutions to promote the application of high-tech Tungsten in the production of fast and safe rechargeable batteries.

Based on the success of the Tungsten refining project and the production of high-tech Tungsten product lines, Masan High-Tech Materials plans to launch Asia’s first and largest Tungsten recycling plant construction project in Thailand. Original. Masan High-Tech Materials aims to turn Vietnam into the region’s leading center for the development of Tungsten and precious metals recycling technology.

The company expects to achieve revenue in 2023 of about VND 16,500 – 18,200 billion, up 6 – 17% compared to the previous year.

Discussion at the congress

Vinfast is also an electric vehicle manufacturer, is there any opportunity or potential for cooperation between MHT and Vinfast?

MHT is not oriented to produce electric vehicles, our core competence is to provide battery solutions for electric vehicles through nyobolt technology.

So in the long term, there is clearly a potential for cooperation between us and Vinfast. We have also provided materials for other electric vehicle manufacturers and will naturally have the opportunity to provide electric vehicle battery services to Vinfast in the future.

How is Nyobolt contributing to the company’s revenue?

Nyobolt is currently only completing the trial run and trial production, so it has not contributed revenue to MHT.

What about HC Starck?

The company has a revenue of about $640 million, 60% of which comes from HC Starck, in the future revenue from high-tech products of HC Starck will account for the majority of the company’s revenue.

Has the company solved the problem of copper (Cu) inventory?

At the end of 2022, we have sold a small output, about 2000 tons of copper in inventory, in 2023 will sell about 6000 tons of pure copper and are selling to the domestic market but the output is still very small compared to total inventory is about 100,000 tons of refined copper.

There is no shortage of customers in the global market, but MHT just lacks a license to sell copper abroad with the volume we want.

The industry will focus on exploiting?

The company mines tungsten as well as recycles products from scrap, and both source the raw materials to create premium products, so we’ll focus on both, not prioritizing either. MHT is still focusing on exploiting Nui Phao mine, along with applying new technology to create products to meet customer needs.

Is the production of Nyobolt batteries aimed at end users, what is the plan in the VN market?

Surely in the next few months there will be a contract to supply products to our manufacturers, in order to bring products to Vietnamese consumers through the distribution system.

We also aim to bring Nyobolt to serve the Vietnamese market, but MHT is currently a shareholder of Nyobolt, so the plans must be discussed with other shareholders to give direction.

MHT’s Q1 business results?

In the first quarter of 2023, we achieved about 160 million USD in revenue, equivalent to the 4th quarter of last year, thanks to sales of copper and high demand for other products in the domestic market.

In Q2 we expect better cost control, higher customer demand, so Q2 numbers are likely to be higher.

What is the current situation of MHT’s bonds?

Like other businesses, we had to find a way to balance the financial health of the company. And at the moment, we don’t see any risk in the issue of bonds, it is very safe to issue bonds.

Currently, the company has about 10% of shares owned by MHT and some strategic partners are looking to invest in the company.

We not only need capital, but also companies with capable technology, suitable roadmap to develop MHT’s strategy.

Dividend plan?

In the short term, MHT has no plan to pay dividends because it is focusing on the company’s strategies.

Debt/EBITDA ratio is improving better, the gap from EBITDA to profit after tax is also shortening, when we do well, the benefits for shareholders will be more obvious, so the company has not yet plan to pay dividends to shareholders.