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 5% upside from the closing price on July 20th, 2023. We recommend ACCUMULATING this stock. Investor doubts following the sharp drop in Q1 2023 are gradually easing as MWG's monthly results demonstrate positive signs. The business's recovery trajectory will exhibit a U-shaped pattern with limited short-term improvement. Hence, investors may contemplate acquiring this stock at a reduced price for long-term retention.
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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