We cut our target price (TP) for MWG by 17% but maintain our BUY rating. We maintain expectation that 2023 will challenge the profitability of MWG and FPT Retail (HOSE: FRT) — the two ICT retailers under our coverage. We forecast MWG’s 2022-2025F EPS CAGR at 12%.

Our lower TP is mainly due to cutting our aggregate 2023-2027F NPAT-MI by 22%, which is a result of our 59% lower 2023F NPAT-MI as we decrease the aggregate 2023F NPAT of The Gioi Di Dong (TGDD — including TopZone) and Dien May Xanh (DMX) by 40% because of significantly weaker-than-expected profitability in Q1 2023, coupled with our previous expectation of weak consumption throughout 2023.

Potential upside catalysts: Stronger-than-expected consumer spending.