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Mobile World: 4M 21 results – Last year’s low base supports growth

  • 4M 2021 net sales reached VND40.4tn (US$1.7bn, +9% yoy) while NPAT jumped to VND1.7tn (US$72.9mn, +26% yoy)
  • TGDD & DMX accumulated revenue of cVND32.4tn (US$1.4bn), increasing 4% yoy mainly on the back of a low comparative base
  • Upside potential from BHX’s labour productivity enhancement initiative will be a catalyst; Buy

4M 2021 net sales reached VND40.4tn (US$1.7bn, +9% yoy) while NPAT jumped to VND1.7tn (US$72.9mn, +26% yoy), completing 32% and 34% of our full-year forecast, respectively, relatively in line with our expectations.

TGDD & DMX accumulated revenue of cVND32.4tn (US$1.4bn), increasing 4% yoy mainly on the back of a low comparative base from last Aril when social distancing measures impacted its physical stores.

BHX accumulated revenue maintained its robust growth of 31% yoy, owing to significant contribution from new stores in mid-2020. Estimated sales per store in April improved by 7% mom to VND1.2bn.

The 15-day social distancing measures announced in HCMC, which includes closure of electronics stores, will definitely hurt TGDD and DMX sales, but we believe the magnitude will not be as severe as last April.

The ongoing pandemic made worse by Covid variants poses larger-than-expected downside risk to our forecast. While our current forecast and the TP of VND184,000 are under review owing to this risk, upside potential from BHX’s labour productivity enhancement initiative will be a catalyst worth noting.


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