MSR Stock Jumps 7% as Elmet Group Takes 4.99% Stake at $2.5B Valuation

Overview

Masan High-Tech Materials (UPCOM: MSR) announced a strategic partnership under which US-based Elmet Group Co. (NASDAQ: ELMT) will acquire a 4.99% equity stake in MSR at a $2.5 billion valuation. The agreement bundles an eight-year offtake commitment of approximately 1,250 tonnes of WO3 equivalent per year, which MSR estimates at about $1.5 billion in gross revenue over the initial term. MSR shares rose 7.13% to VND 57,100 on the session, with more than 2 million shares traded.

Key Facts

• Elmet Group will acquire a 4.99% stake in MSR at a $2.5 billion equity valuation, based on MSR’s achieved profit results.
• The offtake commitment runs more than eight years at roughly 1,250 tonnes of WO3 equivalent annually, estimated at about $1.5 billion in gross revenue at prevailing tungsten prices.
• MSR shares gained VND 3,800, or 7.13%, to VND 57,100 on 24 September, with over 2 million shares changing hands.
• MSR has risen about 70% over the roughly two months since late July.
• First-half 2026 revenue was about $423 million with after-tax profit of about $83 million; Q2 alone contributed $309 million in revenue and $63 million in profit.
• Full-year 2026 guidance is approximately $1.4 billion in revenue and $233 million in after-tax profit.
• MSR declared its first dividend, totaling VND 1,100 billion (about $42 million), and plans to lift tungsten oxide conversion capacity beyond 8,000 tonnes of WO3 per year.

What Happened

In a company announcement on the morning of 24 September, Masan High-Tech Materials said it had formed a strategic partnership with Elmet Group Co., a US-based supplier of tungsten alloys and strategic mineral products to major North American customers. Under the terms, Elmet will purchase 4.99% of MSR at a $2.5 billion equity valuation, a transaction MSR describes as an independent reference point for its value from a NASDAQ-listed strategic partner that has been part of its supply chain for more than 12 years. Jefferies Singapore Limited acted as MSR’s sole financial advisor.

The commercial agreements take effect only after the equity investment closes, and completion depends on necessary conditions including regulatory approvals and corporate authorizations. Both parties target closing in the first half of October. The filing does not disclose the absolute dollar value of the 4.99% stake, though the stated $2.5 billion equity valuation implies a transaction in the range of $125 million. Separately, MSR has been building what it calls a Global Strategic Materials Platform, citing potential additions of 115 million tonnes of polymetallic tungsten resources and expanded tungsten oxide capacity.

Market Context

MSR trades on UPCOM, Vietnam’s unlisted public company market, and the stock has been one of the strongest performers in the Basic Resources sector since late July, gaining about 70% over two months before the announcement. The 24 September session close of VND 56 on volume of 2,359,300 shares, as recorded in the price context, followed the intraday surge to VND 57,100 reported in the article. The move reflects both the immediate deal headline and a broader re-rating of Vietnamese materials names tied to strategic minerals demand.

Strategic Significance

The central thesis is revenue visibility. A long-dated offtake from a NASDAQ-listed integrated tungsten producer converts MSR’s processing capacity into contracted volume, reducing the earnings volatility that has historically weighed on tungsten miners. The $2.5 billion valuation benchmark, set by an outside strategic buyer rather than a domestic bookrunner, gives institutional investors a comparable to test against MSR’s own market capitalization. Elmet’s dual role as both shareholder and customer also aligns incentives: it has an equity interest in keeping MSR’s oxide conversion capacity running and expanding, which supports the planned increase beyond 8,000 tonnes of WO3 per year.

What to Watch

• Confirmation that the transaction closes in the first half of October, including regulatory and corporate approvals.
• Disclosure of the absolute transaction value for the 4.99% stake, which the announcement does not state.
• Q3 2026 results for evidence that tungsten volumes, APT prices and conversion margins are tracking toward the $1.4 billion revenue and $233 million profit guidance.
• Progress on the 115 million tonne resource addition and the tungsten oxide capacity expansion beyond 8,000 tonnes of WO3 per year.
• Any follow-on purchases by Elmet or changes to foreign-ownership limits on UPCOM affecting MSR’s shareholder base.