MWG's revenue in the first 5 months of the year decreased by 21%
According to the recent business report of Mobile World Investment Corporation (Code MWG), MWG's net revenue in May reached about 10,297 billion VND, down 10% over the same period.
Notably, the revenue of the two chains The Gioi Di Dong and Dien May Xanh decreased by about 4% compared to the results in April. This is quite worrying because Dien May Xanh should have had a breakthrough in revenue due to the benefit from the recent heat wave.
MWG's revenue in the first 5 months of the year decreased sharply by 21% (Photo TL)
The company's accumulated revenue in the first 5 months of the year only reached 47,144 billion VND, down 21% over the same period last year.
Compared to the annual plan set at the beginning of the year, after 5 months, Mobile World has only completed 35% of the annual revenue plan. In other words, MWG is much behind schedule compared to the set plan.
Regarding the revenue structure in the period, the Bach Hoa Xanh chain contributed 11,000 billion VND, an increase of about 6% compared to the same period. In contrast, the The Gioi Di Dong and Dien May Xanh chains contributed only 35,000 billion VND in revenue, a decrease of about 27% compared to last year.
MWG's profit could decrease by up to 80% compared to the same period
MWG's difficult business situation has been predicted by many units in advance. Most notably, in the analysis report of BVSC Securities, this unit predicted that MWG's net profit would be only 1,231 billion VND. Equivalent to the company's profit being forecast to decrease by 80% compared to the actual performance in 2022.
BVSC estimates that in 2023, the net profit of the Mobile World and Dien May Xanh chains will decrease by 69%, to only VND2,306 billion. The basis for BVSC's prediction is that mobile phones are not essential goods, so it will take time to fully recover.
Meanwhile, BVSC's forecast shows that the Bach Hoa Xanh chain will continue to lose about VND1,074 billion. Although it has decreased compared to the loss of VND2,961 billion in 2022, this is still a huge number.
This forecast is relatively consistent with the recorded business results of the first 5 months of the year of MWG when both revenue and profit of this unit are behind schedule compared to the yearly plan.
Foreign funds continuously sell MWG shares
Faced with the poor business situation, many foreign funds quickly sold MWG shares to reduce the ownership ratio of this code in their investment portfolio.
Arisaig Asia Fund Limited, a member of Arisaig Partners (Asia) Pte Ltd, sold 1.3 million shares on May 24, 2023. After the transaction, this fund reduced its ownership ratio of MWG to only 6.45%. Previously, this same foreign fund sold 2,397,200 MWG shares on April 11.
Another notable transaction was that the Dragon Capital fund group also sold 979,600 MWG shares, reducing its ownership ratio from 8.01% to only 7.94% of charter capital. Of which, Amersham Industries Limited fund sold 1 million shares, Hanoi Investments Holdings Limited fund bought 20,400 shares.
Source
Comment (0)