DGW - Mobile led sales growth, but laptops lost momentum

- DGW released its H1 2022 results, including revenue of VND11.9tn (USD518mn; +29% YoY) and NPAT-MI of VND348bn (USD15mn; +56% YoY), completing 43% and 44% of our respective full-year forecasts. We see no material change to our current projections, pending a more extensive review.

- In Q2 2022, DGW’s revenue was VND4.9tn (USD213mn; +16% YoY) with NPAT-MI of VND137bn (USD6mn; 18% YoY).

- The change in mass consumers’ behavior to react to inflation by trimming discretionary consumption began to exert a wider impact on DGW’s growth momentum, which is more clearly illustrated in the negative sales growth of laptops & tablets. Although the momentum of mobile revenue also decelerated, this segment recorded high-20s growth and drove DGW’s sales.