- 2025-02-03T00:00:00
- Company Research
- 2024: Net revenue was VND22.1tn (USD883mn; +17% YoY) and NPAT-MI was VND444bn (USD18mn; +25% YoY), completing 101% and 106% of our respective full-year forecasts. NPAT-MI exceeded our expectations due to a higher-than-expected EBIT margin.
- Q4 2024: Net revenue grew 21% YoY and NPAT-MI increased 57% YoY. Sales growth was mainly driven by smartphones sales (46% of total sales in Q4) as it increased 22% YoY (+20% QoQ), mainly driven by DGW’s strong growth of Xiaomi and iPhone smartphones. Office equipment sales (23% of total sales) and home appliance sales (6% of total revenue) respectively increased 22% YoY and 56% YoY. Consumer goods (5% of total revenue) grew 38% YoY, mainly driven by ABInBev’s sales as DGW started to distribute ABInBev products in HORECA channels in late Q3 2024. Laptop sales (20% of total sales in Q4) grew +7% YoY.
- Profitability: EBIT margin improved by 20 bps YoY to 2.4% in 2024. In Q4, EBIT margin improved 140 bps YoY and QoQ, slightly tracking ahead of our expectation. 2024 GPM was beat our expectation by 30 bps.
- Our view: While profitability was ahead of our forecast, we see no material changes to our 2025F forecast as we currently expect GPM and the EBIT margin to improve 10 bps and 20 bps YoY to 9.4% and 2.6%, respectively.
DGW’s Q4 and 2024 results
VND bn | Q4 2023 | Q4 2024 | YoY | 2023 | 2024A | YoY | 2024F | 2024A as % of 2024F |
Net revenue | 4,849 | 5,859 | 21% | 18,817 | 22,078 | 17% | 21,948 | 101% |
| 1,072 | 1,144 | 7% | 5,906 | 6,279 | 6% | 6,319 | 99% |
| 2,204 | 2,687 | 22% | 8,067 | 9,580 | 19% | 9,671 | 99% |
| 1,124 | 1,367 | 22% | 3,441 | 4,386 | 27% | 4,289 | 102% |
| 234 | 364 | 56% | 728 | 993 | 36% | 866 | 115% |
| 215 | 297 | 38% | 676 | 840 | 24% | 803 | 105% |
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Gross profit | 521 | 608 | 17% | 1,559 | 2,055 | 32% | 1,976 | 104% |
SG&A expenses | -435 | -421 | -3% | -1,142 | -1,529 | 34% | -1,478 | 103% |
EBIT | 86 | 186 | 116% | 417 | 526 | 26% | 498 | 106% |
Net financial income/ loss | 38 | -11 | -0.3x | 56 | 29 | -49% | 53 | 55% |
| 66 | 56 | -16% | 195 | 192 | -2% | 179 | 107% |
| -28 | -67 | 139% | -138 | -163 | 18% | -127 | 129% |
NPAT-MI | 90 | 140 | 57% | 354 | 444 | 25% | 419 | 106% |
Gross margin | 10.7% | 10.4% |
| 8.3% | 9.3% |
| 9.0% |
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SG&A/net sales | 9.0% | 7.2% |
| 6.1% | 6.9% |
| 6.7% |
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EBIT margin | 1.8% | 3.2% | 2.2% | 2.4% |
| 2.3% |
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NPAT-MI margin | 1.8% | 2.4% |
| 1.9% | 2.0% |
| 1.9% |
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Source: DGW, Vietcap
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