Hot weather at its peak, selling air conditioners and refrigerators earns tens of thousands of billions

Nagakawa Vietnam Joint Stock Company (NAG) has just announced its consolidated financial report for the first quarter. Accordingly, NAG's revenue in the first quarter of 2023 reached more than VND 533 billion. This is the quarter with the highest revenue and second highest after-tax profit in Nagakawa's history of operations.

By the end of the first quarter of 2023, NAG's inventory decreased slightly, from VND 690 billion at the beginning of the year to VND 671 billion. Cash and cash equivalents increased from VND 14 billion at the beginning of the year to nearly VND 26 billion. Owner's equity increased from VND 393 billion to VND 403 billion.

Profit after tax reached nearly 9.7 billion VND. NAG still maintained a growth rate of 16.5% compared to the same period in 2022. At the end of the first quarter of the year, this enterprise completed more than a quarter of the business plan set for 2023.

(Chart: Ngoc Cuong)

In 2022, Nagakawa achieved 1,909 billion VND in sales revenue, an increase of 29.50% compared to 2021, reaching 106.1% of the plan. The main product line is air conditioners, which continue to be invested in product development, many new models are launched and this is the product line that accounts for 70% of the company's revenue. In addition, the company also has a kitchen equipment business segment.

In 2023, Nagakawa plans to achieve net revenue of VND 2,016 billion, up 6% over the previous year. The expected profit after tax target is VND 35 billion, up 47% over the 2021 performance. The company plans to pay dividends of 5-10%.

Nagakawa Vietnam was formerly a joint venture company, established in 2002. The company's main business areas are manufacturing and trading electronic products, refrigeration and kitchen equipment.

According to a report by Hoa Phat (HPG), in the first quarter of 2023, air conditioner products were positively received in major supermarkets across the country. Hoa Phat water purifiers and air coolers are also being promoted in many different distribution channels. The Group has completed and put into operation a refrigerator and freezer factory with a capacity of 375,000 products/year in the expanded Phu My II Industrial Park.

According to Casper Vietnam, in April, the total number of air conditioners sold nationwide increased dramatically, reaching 394,000 units, 2.5 times higher than in March. Air conditioner sales revenue reached 3,730 billion VND.

Although the season has just begun, the number of sales in April this year is equivalent to June 2022 - the peak sales season of last year. The segment under 10 million VND is dominant. Compared to the same period last year, in the first 4 months of this year, Casper Vietnam's market share increased by 3%, from 13.2% to 16.2%.

Casper is an electronics brand from Thailand, present in Vietnam since 2016. Casper uses a strategy of low prices, long warranty periods, and many promotions to target the low-income customer segment.

Businesses operating in the air conditioning sector make huge profits. (Photo: Duy Anh)

Not only manufacturing, air conditioner sales also make big profits. According to the April business results report of Mobile World Investment Corporation (MWG), air conditioners bring in big revenue because the hot season begins.

According to MWG, most products saw double-digit revenue growth compared to March. Of which, air conditioners saw triple-digit growth due to high demand during the hot season.

Accumulated in the first 4 months of 2023, the total revenue of the Mobile World and Dien May Xanh chains reached 27,500 billion VND. In April alone, the total revenue of these two chains reached 7,300 billion VND, an increase of 30% compared to March thanks to significant sales of air conditioners, household appliances and phones.

Previously, Refrigeration Electrical Engineering Corporation (REE), chaired by Ms. Nguyen Thi Mai Thanh, also reported a large profit in the first quarter of 2023. REE recorded a 16% increase in revenue over the same period to VND2,372 billion. Most of this came from the refrigeration (air conditioning), electricity and water segments. Profit after tax increased by 10% to a record of nearly VND1,055 billion.

In 2022, REE recorded a historic high net profit, up 41% year-on-year to VND2,690 billion. In 2023, REE targets revenue of VND10,962 billion, up 17% year-on-year, and net profit of VND2,700 billion, up slightly by 0.3% year-on-year.

According to data from market research company GfK, in 2022, air conditioner revenue in Vietnam will reach about 22,000 billion VND. This year, the market is also expected to increase by 15 - 20% compared to 2022.

Assessing market prospects, according to Nagakawa Vietnam, opening the market will create fierce competitive pressure for all businesses currently operating in the field of refrigeration products and household appliances.

Foreign-invested enterprises with strong financial potential, modern technology and scientific management methods will be fierce competitors to domestic enterprises.

Currently, in the market distributing refrigeration products and household appliances, there are many domestic and foreign enterprises operating and competing directly for market share such as Gree, Funiki, Sunhouse, Asanzo, Kangaroo, Samsung, Panasonic, LG, Hitachi, Sharp, Daikin, Mitsubishi, Casper,....

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