Masan High-Tech Materials Expands Value Chain Through Deep Processing

Masan High-Tech Materials (MSR) is expanding its value chain and reducing its dependence on the Nui Phao mine by strengthening its deep processing capabilities. The company is pursuing a strategy to maximize the value of each unit of raw material by producing higher value-added products, rather than just mining ore. This strategy is being realized by increasing its capacity to receive concentrates from external partners in addition to raw materials from its own mine, and processing them domestically in Vietnam. In particular, a partnership with South Korea's GB Innovation demonstrates a model of procuring concentrates from Korea and processing them into high value-added tungsten products in Vietnam. This allows MSR to create growth opportunities by utilizing its existing factory facilities and technological capabilities, without being solely dependent on its own mine's production volume. In the second quarter of 2026, refined tungsten product output reached 1,430 tons, a 91% increase year-on-year. This was due to improved production at the Nui Phao mine and increased raw materials after MSR received permission to process external raw materials. MSR plans to increase its annual tungsten oxide production capacity to over 8,000 tons, responding to the growing demand for deep-processed tungsten products. The company also has long-term plans to incorporate recycled tungsten materials back into the production process. MSR utilizes the Nui Phao mine in Vietnam as its primary resource base, while also securing external concentrates through partnerships to maximize the utilization of its processing capacity. This approach aims to improve capital efficiency in the mining and materials industry, which requires significant investment in large-scale facilities, by enhancing the utilization of existing assets. Performance in the second quarter of 2026 was driven by rising tungsten prices and operational improvements. Net revenue more than quintupled to VND 8.138 trillion, while EBITDA surged by 337% to VND 2.492 trillion, marking the company's highest quarterly profit in its operating history. Financial leverage has also been reduced, with the net debt-to-EBITDA ratio falling to 2.1 times. The company aims to achieve a net cash position by 2027. Furthermore, MSR has proposed an interim dividend for 2026 of VND 1,000 per share (10%), the first cash distribution after a period focused on investment and leverage reduction. This proposal is currently being circulated for shareholder approval. In the long term, the Nui Phao mine will remain MSR's resource base. However, the company has identified a potential of approximately 115 million tons of multi-metal tungsten resources in the surrounding areas, which is expected to extend mining and processing operations by an additional 20-30 years.