Foreign investors halted their sell-off of Mobile World Group shares.
Foreign investors disbursed nearly 57 billion VND to buy MWG shares on June 10th, while selling less than 40 billion VND, thus breaking a selling streak that had lasted for 11 consecutive sessions.
Shares of Mobile World Investment Corporation (stock code: MWG) closed the trading session on June 10th at VND 63,000, up nearly 1.5% from the reference price and extending its upward trend for the second consecutive session. While the share price edged up, MWG's liquidity weakened for the third consecutive session, as evidenced by the trading volume reaching only 4.8 million shares, far below the 6 million shares of the previous week's closing session. Consequently, the trading value also decreased from VND 370 billion to VND 304 billion.
However, one of the positive signs for MWG on June 10th was the return of foreign investors to buying shares after a long period of selling. Specifically, foreign investors disbursed 56.9 billion VND to buy 908,000 shares while only selling 620,000 shares, equivalent to approximately 40 billion VND. The net buying value therefore reached 18 billion VND.
Previously, foreign investors continuously sold off shares of Mobile World Group amidst a continuous increase in market price. Net selling value fluctuated between 30-90 billion VND per session, but in one exceptional session, foreign investors sold nearly 140 billion VND, the highest level in the past three months. This continuous selling also pushed the percentage of vacant shares held by foreign investors from 0 shares in mid-May to 13.4 million shares currently.
With its current price of 63,000 VND, Mobile World Group's stock has increased by approximately 50% compared to 42,000 VND at the beginning of the year. The company's market capitalization is currently at 92,121 billion VND.
However, according to some securities companies, MWG's price outlook remains relatively bright thanks to its ability to achieve its revenue and profit targets.
Specifically, in a report published three days ago, the analysis team of An Binh Securities Company suggested that the fair price of MWG is 68,200 VND. According to the experts, the upward price momentum of MWG comes from the fact that the business results of The Gioi Dien May and Dien May Xanh are expected to record positive growth compared to the low base level of the same period (although not yet returning to the previous peak levels of the 2019-2022 period). In addition, the gross profit margin is expected to improve significantly thanks to optimized inventory management and the price war to compete for market share among retail businesses has ended.
In another report by KB Securities Vietnam, the target price for MWG is VND 69,000, and a buy recommendation is given.
“The ICT sector, with the Mobile World and Dien May Xanh chains, has shown many positive signs after the price war ended. Revenue growth for both chains reached 7% year-on-year, faster than the industry average despite closing some stores. Bach Hoa Xanh continues to maintain revenue growth despite stagnant purchasing power and no new store openings. We project that in 2024, MWG will have net revenue of VND 132,866 billion (+11.4%) and after-tax profit of VND 3,679 billion (+2.095%),” the analysis team of KB Securities Vietnam commented.
This year, Mobile World Group plans to achieve revenue of VND 125,000 billion, a 6% increase compared to the same period last year, and projected after-tax profit of VND 2,400 billion, a 13.29-fold increase compared to 2023. Earlier this year, Mobile World Group's leadership stated that a key direction for 2024 is a comprehensive restructuring towards "reducing quantity and increasing quality" to strengthen internal capabilities and prepare for a breakthrough in sustainable growth.
In the first quarter of the year, the company recorded revenue of VND 31,486 billion, an increase of more than 16% compared to the same period last year, while after-tax profit increased 41.4 times to nearly VND 903 billion.
Source: https://baodautu.vn/nha-dau-tu-ngoai-cat-chuoi-xa-hang-co-phieu-the-gioi-di-dong-d217337.html
Comment (0)