AGM Note:

• TGDD & DMX: Management expects Vietnam’s phones and electronics market to grow 5–8% YoY in 2025. MWG targets to expand its market share to 70–80% by 2030, up from the current 50–60%. Market share gains will primarily come from revenue growth through an expanded product portfolio, rather than through new store openings.
• BHX: Management is confident in achieving the 2025 target of opening 400 new stores. For 2025, BHX aims for SSSG of over 10% YoY and a minimum net profit of VND500bn. In HCMC, 30% of shops are operating at maximum capacity, while the remaining shops have significant room for growth — implying that future growth will be driven by SSSG and new store openings. Capex for new stores in the central region is 30% lower than for BHX’s previous stores, with breakeven sales/store of VND1.2–1.5bn. BHX was profitable in Q1 2025, though its net profit was modest.
• EraBlue: on track to reach 150 stores in total by YE2025. Management maintains the target of 500 stores by 2030, with plans for an IPO in the Indonesian stock exchange.
• Management expects no direct impact from the US reciprocal tariff on Vietnam, but foresees indirect impact from weaker consumer disposable income. Nevertheless, MWG remains confident in its ability to grow even in a flat or slightly declining market. Over the past two years, MWG has undertaken significant restructuring efforts and believes it is well-positioned to adapt to challenges.
• Other items:
• Shareholders approved 2025 guidance of net revenue of VND150tn (+12% YoY) and NPAT of VND4.9tn (+30% YoY).
• Shareholders approved a cash dividend of up to VND1,000/share, expected to be paid in Q3 2025.
• Shareholders approved a share buyback plan for up to 10mn shares to be repurchased.

Earnings Flash:

• Q1 2025: Net revenue was VND36tn (+15% YoY) and NPAT-MI was VND1.5tn (+71% YoY), fulfilling 25% and 30% of our respective full-year forecasts. NPAT-MI aligns with our expectations. We see no potential changes to our forecasts, pending a fuller review.
• March 2025: Total sales increased 18% YoY. TGDD & DMX sales grew 14% YoY while BHX’s sales grew 28% YoY.
• TGDD & DMX’s revenue increased 14% YoY and 6% QoQ in Q1 2025.
• BHX’s monthly sales/store remained at approximately VND2.0bn in March 2025 and in Q1 2025. In Q1 2025, its total sales increased 20% YoY and inched up 2% QoQ. BHX generated positive net profit in Q1 2025. The amount of profit is not disclosed.
• Overall profitability: MWG’s EBIT margin improved 1.1 ppts YoY to 4.4% in Q1 2025, mainly driven by a 3.1-ppts reduction in selling expenses/sales YoY, in which depreciation expenses decreased 31% YoY and external services decreased 10% YoY. Net financial income also increased 69% YoY due to the increased balance of cash, short-term investments, and short-term loan receivables. NPM expanded 1.4 ppts YoY to 4.3%.
• Store openings: In Q1 2025, MWG opened 232 new BHX and 8 new EraBlue stores. In March alone, BHX opened 138 new stores.

MWG’s Q1 2025 results

Source: MWG, Vietcap (¹ Vietcap estimates)

Powered by Froala Editor