Tungsten market surge allows Masan High-Tech Materials to seize business opportunities
In the dynamic world of high-tech materials, Masan High-Tech Materials (MHT) is making waves with its commitment to delivering value through its 'Back-to-Basics' strategy. This strategy, announced last year, focuses on operational optimisation, cost efficiency, and sustainable development.
MHT's subsidiary, MSR, has been leading the charge, with impressive financial results. In the first half of 2025, MSR generated revenue of nearly VND3 trillion ($114.67 million), marking a 20% increase year-on-year. The second quarter was even more promising, with MSR achieving a revenue of VND1.6 trillion ($61.2 million), up nearly 28% compared to the same period last year.
The financial growth is not limited to revenue. MSR's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased strongly to 35% in the second quarter of 2025, a significant leap from the 12% recorded a year ago.
Vietnam, where MHT is based, is the second-largest tungsten producer in the world, accounting for nearly 22% of US imports. The global tungsten market has seen shifts recently, with China imposing export controls on tungsten, causing exports to fall by about 17% as of July 2025. This presents opportunities for companies like MHT to assert their position.
The US government has also imposed a 25% tariff on some Chinese tungsten products and banned the Department of Defence from purchasing tungsten from countries such as China, Russia, Iran, and North Korea. This has further increased the demand for alternative sources of tungsten, with mining and refining firms outside China, such as in Vietnam, Russia, Bolivia, Portugal, and Rwanda, becoming more attractive.
The Vietnamese government's focus on sustainable extraction and deep processing of mineral resources could potentially benefit MHT and its operations. The revised Law on Geology and Mineral Resources aims to enhance transparency, improve state management efficiency, and encourage enterprise participation in global supply chains.
The rising demand for strategic minerals in the era of green technologies presents opportunities for MHT to affirm its role as a reliable alternative supplier outside China. The price of APT, the main raw material for tungsten production, is currently around $630/MTU, nearly double the estimated average price of MSR in 2024 ($318/MTU).
MSR's after-tax profit reached VND6 billion ($229,000), an improvement of VND400 billion ($15.3 million) from the same period last year. The strong financial performance is expected to contribute around 6.5% of Masan Group's operating profit in 2025.
With the Nui Phao mine and its 'Back to Basics' strategy, MHT is well-positioned to seize opportunities and climb the global supply chain. The company's operations could potentially help elevate Vietnam's position on the global high-tech minerals map.
The Vietnamese government's approval of a master plan for mineral resource exploration, exploitation, processing, and use until 2030, with a vision to 2050, prioritising sustainable extraction and deep processing over raw exports, further supports MHT's mission.
As Masan Group Corporation has achieved over 50% of its full-year profit target as of the second quarter and first half of 2025, it seems that MHT's 'Back-to-Basics' strategy is paying off. The company is poised to navigate the complexities of the global tungsten market and continue delivering value to its stakeholders.
