AsemconnectVietnam - Song Hong Garment Joint Stock Company (HOSE: MSH) recorded positive business results in Q2/2026, with both revenue and net profit increasing by double digits compared to the same period last year.

The main driver of this growth comes from improvements in core production and business operations, with revenue increasing faster than the cost of goods sold, resulting in improved gross profit margins despite a sharp decrease in financial income.
In Q2/2026, MSH achieved net revenue of VND1,656.96 billion, a 12.96% increase compared to VND1,466.81 billion in the same period of 2025.
Song Hong Garment's leadership stated that the core driving force behind the revenue surge was the successful signing and execution of a large number of orders from partner customers.
Despite achieving significant revenue growth, May Song Hong also faced general pressures as production costs rose across the board. Cost of goods sold in the second quarter reached VND1,296.24 billion, an increase of 11.90% compared to the same period last year, but still lower than the 12.96% increase in revenue. As a result, gross profit reached VND360.72 billion, an increase of 16.94% compared to the second quarter of 2025.
The gross profit margin improved from approximately 21% in the second quarter of the previous year to nearly 21.8% in the second quarter of this year. This indicates improved profitability from production activities and helps the company better absorb cost pressures.
Although core operations performed well, the financial segment was less positive. Financial income in the second quarter reached only VND39.70 billion, a decrease of approximately 45% compared to VND72.13 billion in the same period last year. Financial expenses increased from VND24.34 billion to VND28.29 billion, with interest expenses rising to nearly VND21.79 billion.
Therefore, MSH's net financial profit was only about VND11.41 billion, a decrease of VND36.38 billion, equivalent to a decrease of more than 76% compared to Q2/2025.
In addition, selling expenses in the second quarter increased by 10.17%, to VND94.52 billion. Conversely, administrative expenses decreased by 9.86%, from VND45.15 billion to VND40.70 billion, helping to mitigate pressure on profits. Profit from joint ventures and associated companies decreased by more than half, to approximately VND2.14 billion. Other income increased from over VND1 billion to approximately VND3.61 billion.
However, the financial picture also shows increased pressure on working capital. As of June 30, 2026, the company's inventory reached over VND1,006 billion, an increase of nearly 83% compared to the end of 2025 (VND551 billion). Accounts receivable increased to approximately VND1,123 billion, while total outstanding loans and financial leases increased from approximately VND1,296 billion at the beginning of the year to nearly VND1,744 billion. At the same time, cash and cash equivalents decreased sharply from nearly VND740 billion to approximately VND220 billion.
After deducting expenses and taxes, MSH's consolidated after-tax profit for Q2/2026 reached VND203.42 billion, an increase of 13.04% compared to the same period last year. Pre-tax profit reached VND238.38 billion, an increase of over 9%, while current corporate income tax expenses decreased from VND38.62 billion to VND34.96 billion.
Explaining why May Song Hong's consolidated after-tax profit successfully reversed its downward trend to maintain a 13.04% growth rate despite many pressures, the company's management stated that the decisive factor driving the consolidated profit increase was the additional profit from the system's subsidiaries.
For the first six months of 2026, MSH recorded net revenue of VND2,698.19 billion, an increase of 7.8% compared to the same period. After-tax profit reached VND284.71 billion, an increase of 6.6%.
Given MSH's positive business results, experts at KBSV Securities have offered a positive outlook on the company's prospects, thanks to its position as a highly competitive garment export business, possessing a large international customer base and a high proportion of FOB orders.
In the context of the continuing shift in global supply chains, MSH is expected to increase its market share in high-tech segments – where the company has advantages in quality, scale, and long-standing relationships with major brands.
At the same time, the gradual increase in capacity at the Song Hong 11 factory will create room for production growth in the coming years without significantly putting pressure on fixed costs, thereby supporting improved revenue and profits. Furthermore, the need to replenish inventory at major retailers after a period of significant cost reductions, along with the ability to control production costs and flexibly adjust order structures between FOB and CMT, is expected to help MSH maintain high profit margins.
With a sound financial foundation, stable cash flow, and an attractive cash dividend policy, MSH continues to be a promising and noteworthy company in the export garment sector.
According to Mirae Asset, Song Hong Garment's foundation remains relatively stable thanks to its position in the export garment industry, its system of over 20 production facilities in the North, and its large customer base concentrated in the US market such as Walmart, Nike, Target, and Haddad Brands.
Mirae Asset forecasts MSH's revenue in 2026 to reach approximately VND5,625 billion, a slight increase of 1.5% compared to 2025. Net profit after tax is projected at approximately VND682.2 billion, an increase of 1.7%; of which net profit attributable to shareholders of the parent company is estimated at approximately VND624 billion.
Source: VITIC/Bao Tai chinh – Dau tu