Analyst Pinboard MWG – TGDD & DMX thrived post-lockdown, but BHX’s sales per store dropped
- Social distancing caused a divergent in key chains’ SSSG: TGDD & DMX stores posted a SSSG of -36% while BHX chain thrived with a SSSG of +33% in Q3-2021.Higher contribution of DMX Super mini (DMS) lifted blended GPM of TGDD & DMX to 23% (+1.5 pps YoY), whereas effort to increase fresh food supply in the time of social distancing propped BHX’s GPM after wastage up to more than 28%.
- After the lockdown relaxation in October, consumer electronics chains’ revenue jumped to more than VND10 trillion on the back of pent-up demand and promotion campaigns, but BHX’s revenue declined to around VND2 trillion due to impacted demand following repatriation of consumers and wet market reopening. As a result, BHX is likely to incur losses in Q4-2021 after a profitable Q3-2021.
- We revise 2021F NPAT upward by 12% to VND4.7 trillion (+20% YoY) to reflect system-wide profit margins expansion. On the back of SSSG recovery for TGDD & DMX and enhanced profitability of BHX, 2022F Revenue/NPAT are projected at VND150 trillion (+26% YoY)/VND6.8 trillion (+45% YoY). As a results, we revise the TP by +10% from the last report to 163,500, implying a total expected return of 19% as of Nov 22nd, 2021.
Mobile World Investment Corp. Mobile World Investment Corporation is a Vietnam-based company primarily engaged in the retail sale industry. The Company operates two retail chains, namely dienmay.com and thegioididong.com. Thegioididong.com chain specializes in the retail sale of digital products including cellular mobile phones, tablets, laptops and accessories for these products. Dienmay.com chain specializes in the retail sale of consumer electronic products such as televisions, karaoke systems, refrigerators, washing machines, rice cookers, blenders, irons, microwave ovens, vacuum cleaners, etc. It also sells digital products such as mobile phones, tablets, laptops and accessories for these products.
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