Viet Dragon Securities - Mobile World Investment (MWG) MWG – 5M 2023 results: A slight signal of sales recovery in Q2

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Viet Dragon Securities

Loan Nguyen

MWG – 5M 2023 results: A slight signal of sales recovery in Q2

MWG's May 2023 revenue dropped 10% YoY but rose 4% MoM, driven by higher CE demand in hot weather and effective promotions. Accumulated 5M 2023, MWG’s sales plunged by 21% YoY to reach VND 47,144 Bn (or USD 2.0 tn).
ICT segment's earnings recovery is expected to follow a U-shaped pattern, with limited short-term improvement due to the lack of significant signs of improvement in consumer income and purchasing power, key drivers for a sustainable revival in the electronics retail sector. The breakeven point of BHX, anticipated in late 2023 or early 2024, is an important catalyst to consider for a potential upward revision.
We forecast MWG’s net revenue and net income figures of VND 114/132 tn (-15%/+16% YoY) and VND 1.5/4.4 tn (-64%/+192% YoY) in FY2023/2024, respectively. 2023/2024 EPS to reach VND 1,018/2,973.
Using the SOTP method, we arrive at a target price of 51,200/share, representing a 5% upside from the closing price on July 13^th, 2023. We recommend ACCUMULATING this stock.

13/07/2023 7 EN

Underlying

Mobile World Investment

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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VN000000MWG0 Hochiminh Stock Exchange Vietnam

Provider

Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts

Loan Nguyen

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Result Update Report: MWG - On track to sales recovery, yet a bumpy road for full profit restoration

With the implementation of flexible measures to stimulate demand and gain market share, we expect ICT sales to gradually improve towards the end-2023. While it will take time for the segment's profitability to recover, MWG, with large scale advantage and strong cash flow, has the fastest ability to recover once the economy and consumption rebound. The growth-driver segment, BHX, is demonstrating its potential to break even by the end of 2023. We still hold a positive outlook for its long-term growth prospects. Using the SOTP method, we arrive at a target price of 51,200/share, representing a...

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The market continues to recover but shows signs of caution at the resistance area of 1,210 - 1,220 points. It is expected that the market will continue to test the resistance zone of 1,210-1,220 points after the holiday season, but the possibility of being blocked in this zone is still present and the risk of setbacks still exists

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MWG – 5M 2023 results: A slight signal of sales recovery in Q2

Mobile World Investment Corporation: 2 directors

Result Update Report: MWG - On track to sales recovery, yet a bumpy road for full profit restoration

Maintain the green after the holidays

HAH - Profit continues to decline, but tends to stabilize in Q1-FY24

Try to remain green

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