'Holding' 49,000 billion VND, how does Mobile World 'trade money'?

Recently buying Mobile World shares, investors are interested in the "money trading" ability of this business no less than the core retail sector...

The profits from "money trading" by this leading retail company listed on the stock exchange are considerable… - Photo: MWG

MWG stock is highly recommended; what makes Mobile World Group special?

Mobile World Group 's (MWG) stock was traded at 75,000 VND per share in the most recent session, an increase of over 20% in the past four months.

Recently, securities companies have consistently recommended this stock for their clients to buy, with a target price that could exceed 90,000 VND.

The investment argument put forward is that, in the short term, the share buyback program (10 million shares, expected as early as October) could support the share price.

In the long term, Bach Hoa Xanh's profitability will be the main growth driver from 2026 onwards, while the Erablue chain is expected to increase its market share after reaching the break-even point.

No reports have yet mentioned the potential for expansion into the "sideline" areas that Mobile World Group is pursuing. According to its Q2 2025 financial report, the retail giant has a cash reserve of approximately 49,000 billion VND.

Specifically, at the end of June 2025, MWG's total assets reached over 81,000 billion VND, an increase of nearly 10,600 billion VND in six months. This strong increase came from a record high amount of cash and short-term financial investments, totaling 40,333 billion VND, an increase of over 6,100 billion VND.

In more detail, MWG stated that it has 27,743 billion VND in bank deposits earning interest.

In addition, the company allocated 12,130 billion VND in short-term investments in bonds and other investments with maturities of less than one year to earn interest.

In its long-term financial investment portfolio, MWG is holding 850 billion VND in bonds with maturities exceeding one year, earning interest.

Another notable source of funding on the balance sheet is VND 7,929 billion in short-term loans to partners, an increase of nearly VND 1,900 billion in the first six months.

In total, MWG's cash, deposits, short-term bonds, and loans amounted to approximately 49,000 billion VND.

Thanks to the aforementioned funds, MWG earned 1,354 billion VND in interest income from deposits and investments in the first half of the year, a 30% increase compared to the same period last year - surpassing the net profit of many other large listed companies.

It's not just about collecting money.

MWG's cash reserves of nearly 49 trillion VND, if well managed, will generate stable profits. However, while recognizing the opportunity, investors should also consider the risks involved, such as market volatility or lax management, which could lead to widespread risks and directly impact the company's financial health and reputation.

In theory, businesses can become more dependent on fluctuations in monetary policy, rather than relying solely on the health of their core business operations.

Large cash and financial investments require extremely rigorous internal risk management. Any misstep in capital allocation, bond selection, or lending partner choice could be detrimental.

Examining the balance sheet, MWG's liabilities at the end of June totaled VND 50,985 billion, an increase of nearly VND 8,700 billion compared to the beginning of the year.

Of that amount, short-term loans accounted for VND 31,538 billion, an increase of over VND 4,200 billion. The report did not show any long-term loans.

With equity capital, MWG has over 30,016 billion VND, including 14,796 billion VND in share capital and 14,297 billion VND in undistributed profits, both of which have increased.

To cover all outstanding loans, MWG also allocated 700 billion VND to "interest expense," an increase of nearly 190 billion VND compared to the same period last year.

Overall, net profit from "money trading" continues to make a significant contribution to MWG's business performance.

Overall, in the first six months of 2025, MWG recorded net revenue of VND 73,754 billion, an increase of 12.2% compared to the same period last year.

Of that total, the Mobile World chain generated 16,595 billion VND, accounting for 22.8%; the Dien May Xanh chain generated 32,895 billion VND, accounting for 44.6%; and the Bach Hoa Xanh chain contributed 22,643 billion VND, accounting for 30.7%.

After deducting expenses, MWG's net profit reached VND 3,205 billion, an increase of 54%.

However, a risk to consider with retail stocks, including MWG, is that non-essential consumer demand may recover more slowly than expected.

In addition, rising inflationary pressure can increase the cost of living, thereby eroding purchasing power and causing customers to prioritize spending on essential goods instead of phones, electronics, or technology products.

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BINH KHANH

Source: https://tuoitre.vn/om-49-000-ti-dong-the-gioi-di-dong-buon-tien-kieu-gi-20250907150240895.htm