- 2024-05-02T00:00:00
- Company Research
- Q1 2024: Net revenue was VND31.4tn (USD1.3bn; +16% YoY) and NPAT-MI was VND902bn (USD36mn; +42.4x YoY), fulfilling 25% and 40% of our respective full-year forecasts. While revenue was in line with our expectations, NPAT-MI beat our forecast mainly thanks to better-than-expected profitability of TGDD & DMX.
- TGDD & DMX’s aggregate revenue increased 7% YoY in Q1 2024 despite operating 224 fewer stores compared to Q1 last year. This was mainly driven by double-digit sales growth of consumer electronics category, especially ~50%-YoY growth in air conditioner sales.
- BHX’s monthly sales/store was maintained at approximately VND1.8bn (similar to the level achieved in Q4 2023) in Q1 2024. BHX’s total sales increased 43% YoY in Q1 2024 thanks to the low bases of average sales/store in Q1 last year (which was only VND1.3bn).
- Profitability: Thanks to the growing contribution of consumer electronics products in total sales, TGDD & DMX’s GPM increased 2-3 ppts YoY to 19~20% (per our estimate) in Q1 2024. This coupled with cost cutting measures help TGDD & DMX’s EBIT margin improve by 2.5 ppts to 5.6%, which is close to the pre-COVID (i.e., 2018-19) level average of 6%. As for BHX, its EBIT margin (and also NPM) continued improving, reaching -1.2% in Q1 2024 (+4.4 ppts YoY; +70 bps QoQ on an normalized level, per our estimate).
- Our view: BHX’s margin improvement is in line with our forecast. Nonetheless, TGDD & DMX’s profitability exceeded our expectations due to better-than-expected change in product mix towards higher GPM category - consumer electronics. We see upside potential to our 2024 forecast, pending a fuller review.
MWG’s Q1 2024 results
VND bn | Q1 2023 | Q1 2024 | YoY | 2024F | Q1 2024 as % of 2024F |
Net revenue | 27,106 | 31,441 | 16% | 125,016 | 25% |
| 6,668 | 6,804 | 2% | 29,007 | 23% |
| 13,363 | 14,538 | 9% | 55,118 | 26% |
| 6,397 | 9,149 | 43% | 38,385 | 24% |
| 678 | 950 | 40% | 2,505 | 38% |
Online sales 1 | 3,795 | 3,500 | -8% | 17,290 | 20% |
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Gross profit | 5,214 | 6,713 | 29% | 24,963 | 27% |
SG&A expenses | -5,109 | -5,690 | 11% | -22,283 | 26% |
EBIT | 105 | 1,023 | 873% | 2,680 | 38% |
| 622 | 1,198 | 93% | 2,815 | 43% |
| -354 | -105 | -70% | -280 | 38% |
| -74 | -70 | -6% | -272 | 26% |
| -89 | 0 | N.M. | 0 | N.M. |
Net financial income | 63 | 210 | 3.3x | 290 | 72% |
Net other income/ loss | -9 | -6 | -34% | 0 | N.M |
NPAT-MI | 21 | 902 | 42.4x | 2,263 | 40% |
Gross margin | 19.2% | 21.3% |
| 20.0% |
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SG&A/net sales | -18.8% | -18.1% |
| -17.8% |
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EBIT margin | 0.4% | 3.3% |
| 2.1% |
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| 3.1% | 5.6% |
| 3.3% |
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| -5.5% | -1.2% |
| -0.7% |
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NPAT-MI margin | 0.1% | 2.9% |
| 1.8% |
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Source: MWG, Vietcap (1 Online sales are included in segmental sales presented above; 2 Vietcap estimates)
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