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Viet Dragon Securities
Son Tran

Analyst Pin-board MWG – 2022 AGM Note

  • 2022 Guidance: revenue and NPAT increase 14% YoY/30% YoY to VND123 trillion/ VND 4,901 billion. This plan implies that net profit margin will improve in 2022, which we believe will come from optimizing the operation of key chains, especially Bach Hoa Xanh (BHX).
  • For TGDD & DMX, we believe that the main growth driver will come from the market share consolidation of Apple products and consumer electronics as Topzone and DMX chains to further expand their physical store network amid impacted purchasing power due to inflation, causing the expected growth of the CE market standing at single-digit this year.
  • Regarding the BHX chain, 2022 will be the year in which the management will radically revamp back-end operations (ensuring the quality of fresh goods, improving the shopping space, optimizing the inventory forecasting), in order to create a solid foundation for expansion in the following years. The AGM also approved the private placement plan of BHX with a maximum offering rate of 20% to raise investment capital for logistics investment.

While the plan for TGDD & DMX is in line our expectations, the changes of BHX's operation strategy as well as the expansion of other chains such as An Khang, AVA Kids, and EraBlue (in Indonesia) are material changes to our projections. Therefore, the current target price – VND 163,500 – is being reviewed for these new development plans…

25/04/2022 5 EN
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Viet Dragon Securities
Viet Dragon Securities

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Son Tran

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