A director at Mobile World Investment Corporation sold 1,000,000 shares at 0.000VND and the significance rating of the trade was 77/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the ...
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 g...
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 secto...
· BHX sales grew for the fifth consecutive month despite the closure of about 400 stores in recent months. TGDD & DMX revenue, on the other hand, decreased slightly compared on monthly basis amid the low season. · We project that MWG is likely to miss this year's profit guidance mainly due to BHX's large loss after the restructuring process, but we believe that the chain's efficiency will improve more clearly in 2023. · Forecasted revenue / NPAT are VND 139 tr...
· TGDD/DMX is still the key growth engine, posting a total revenue growth of 21% YoY, mainly driven by the new openings (TGDD, Topzone and DMX Supermini) and a robust increase in online sales of 150% YoY. BHX sales were flat year-on-year despite a 20% YoY increase in the number of stores as sales per store are still being affected. Group-wide revenue, therefore, grew by 18% YoY. · NPAT growth decelerated to 8% YoY after the estimated loss from subsidiaries, mainly contributed ...
We remain positive on Vietnam equities in the long term due to the following structural catalysts: better domestic demand, companies’ earnings prospect, economic activities and FDI inflows on the back of broader economic reopening and fiscal stimulus package disbursement. These factors will provide an efficient buffer against higher, albeit in control, inflation and external risks namely geopolitical uncertainties and slowing global growth. We also see upside potential from the perspective of...
MWG officially announced a partnership with PT Erafone Artha Retailindo ("Erafone"), a subsidiary of Erajaya Group (Bloomberg: ERAA IJ) in Indonesia, to form a joint venture company named PT Era Blue Elektronic ("Era Blue") selling consumer appliances in Indonesia. ERAA is the leading ICT distributor and retailer in Indonesia, according to Euromonitor. The partnership should be a good match for both companies as ERAA hasn't been selling white goods and the JV could leverage MWG's experience...
· MWG officially announced the partnership with PT Erafone Artha Retailindo (“Erafone”), a subsidiary of Erajaya Group (Bloomberg: ERAA IJ) in Indonesia, to form a joint venture company named PT Era Blue Elektronic (“Era Blue”) selling consumer appliances in Indonesia. · ERAA is the leading ICT distributor and retailer in Indonesia, per Euromonitor. · The partnership should be a good match for both as ERAA hasn’t been selling white goods and the JV could leverag...
While upbeat Q4-2021 results of TGDD & DMX, primarily led by solid demand of ICT products post lockdown, lifted full-year blended SSSG to below 1%, BHX saw its monthly sales per store dropping to the under VND 1bn in Q4-2021 following weakened purchasing power dragged the chain’s SSSG down to 2%. Strong results from key mature chains led the Group’s revenue and NPAT growth to 13% YoY and 25% YoY, respectively, fulfilling 103% of forecasted revenue and 104% of forecasted NPAT. While the p...
· MWG rolled out five new retail chains on Jan 10th, 2022, namely AVASport, AVAFashion, AVACycle, AVAKids, AVAJi, respectively selling sportswear, clothes, bikes, mom & kids items, and jewelry. Initial results were encouraging with revenue posting USD 1mn after three days. · Though these new chains are still in the pilot phase, we see interesting upside potential for MWG as the company, a seasoned retailer with top-notch execution, is entering new fragmented markets with...
We believe MWG's flexible business execution to deal with softer consumer electronics demand, and BHX's profitability will bolster system-wide operating efficiency and drive earnings growth post-2021. Our projected NPAT 3Y CAGR of 35% during 2021f-24f makes the current 2022f P/E of 14.8x appealing. We lift our TP by 10% to VND163,500 per share, which is based on the sum-of-the-parts approach, due to our upward revision of 2021f-24f NPAT, and a rollover of our valuation to 2022f. We reiterate...
Projected 2021F/ 22F revenue to come at VND119 trillion (+10% YoY; USD5.2 bn)/ VND150 trillion (+26% YoY; USD6.6 bn). For TGDD & DMX, we expect a positive SSSG of 10% for 2022F from the low base in 2021F on the back of a gradual recovery in purchasing power and initiatives to increase sales per store including rollouts of the new Topzone format while piloting fashion accessories shop-in-shop format named BlueJi, and sporting goods chain named BlueSport will offer potential upside. While other ch...
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...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
4M 2021 net sales reached VND40.4tn (US$1.7bn, +9% yoy) while NPAT jumped to VND1.7tn (US$72.9mn, +26% yoy), completing 32% and 34% of our full-year forecast, respectively, relatively in line with our expectations. TGDD & DMX accumulated revenue of cVND32.4tn (US$1.4bn), increasing 4% yoy mainly on the back of a low comparative base from last Aril when social distancing measures impacted its physical stores. BHX accumulated revenue maintained its robust growth of 31% yoy, owing to significa...
MWG maintained an encouraging growth rate despite the pandemic in 2020 with revenue and NPAT up by 6% yoy and 2% yoy, respectively, completing 100% of our full-year forecasts. January 2021 revenue and NPAT contracted by 12% yoy and 11% yoy, respectively, due to different Tet timing in 2020 and negative impacts from the recent Covid-19 outbreak in Hai Duong in late January 2021. 2M-2021 revenue, which excludes the effect of different Tet timing between the two years, grew by 5% yoy to VND 21...
In 11M 20, MWG's revenue came in at VND99.3tn (+7% yoy). Net profit expanded reaching VND3.6tn (+2% yoy). These results are in line with our forecasts for 2020, completing 92% of our estimates in terms of both revenue (VND108.4tn) and net profit (VND3.9tn). For 2021, we project that revenue will reach VND146.3tn (+ 35% compared to 2020e) and net profit of VND5.4tn (+37% vs. 2020e), corresponding to an EPS (adjusted for ESOP) of VND11,506. Thus, the 2021F P/E as of 30 December 2020 is 10.2x. W...
Vietnam's stock market increased sharply in August and became one of the best markets in the world as the VNIndex increased by 10.4% m/m. Looking back on the last few sessions of August, we notice that liquidity was rising in the last part of the month. This was different from the sudden liquidity rises in June and July the when market corrected at that time. By contrast, we found out that when the liquidity and the market are in the same direction, the market trend usually is maintained in t...
In our 23-page strategy report, we look at investment ideas and highlight our favourite stocks. We also cover Vietnam and global macro as well as our July stock market outlook. In Q2 20, Vietnam’s GDP grew 0.24% yoy, better than consensus expectations as most industries recovered well after the “social distancing†period. Hence, we don’t expect companies’ results to be as bad as the consensus predictions. Despite that, there will be divergent results among sectors. Companies that have ...
Although the company’s 2020 guidance was rather conservative and lower than our forecast, we maintain our estimates for the year. Revenue should reach VND114,595bn (+12% yoy) while we expect NPAT to stay flat at VND3,929bn (+2% yoy). Despite the flattish NPAT growth, we expect MWG to issue c2% of total shares outstanding as ESOP for 2020 as a result of the new policy. While this new ESOP policy remains controversial, we believe it is necessary to maintain working incentive for employees, foll....
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