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

Recently buying Mobile World shares, investors are interested in this company's ability to "trade money" no less than its core retail sector...

The profit from "money trading" of this leading retail business on the stock exchange is not small... - Photo: MWG

MWG stock is highly recommended, what is special about Mobile World ?

Mobile World 's MWG code was traded in the most recent session at 75,000 VND/share, up more than 20% in the past 4 months.

Recently, this stock has been continuously recommended by securities companies for customers to buy with a target price that could exceed 90,000 VND.

The investment thesis is that in the short term, the buyback of treasury shares (10 million shares, expected as early as October) could support the stock price.

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

There has been no report mentioning the possibility of development in the "cross-border" field that Mobile World is pursuing. As shown in the financial report for the second quarter of 2025, the retail giant has a "cash vault" of about 49,000 billion VND.

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

In more detail, MWG said it has bank deposits of VND 27,743 billion earning interest.

In addition, the company invested 12,130 billion VND in short-term bonds and other investments with terms of less than 1 year to earn interest.

In the long-term financial investment category, MWG is "holding" 850 billion VND in bonds with a term of over 1 year and enjoying interest.

Another notable source of capital on the balance sheet is VND7,929 billion in short-term loans to partners, an increase of nearly VND1,900 billion after 6 months.

Cumulatively, the total value of MWG's cash, deposits, short-term bonds and loans has reached about VND49,000 billion.

Thanks to the above amount of money, MWG earned VND1,354 billion in interest on deposits and investments in the first half of the year, up 30% year-on-year - exceeding the net profit of many other large listed companies.

Not just collect money

MWG's "treasury" of nearly VND49,000 billion, if well managed, will generate stable profits. However, if investors see opportunities, they should also consider additional risk factors such as: market fluctuations or loose management, risks will spread, directly affecting the financial health and reputation of the business.

In theory, businesses can rely more on monetary policy fluctuations, rather than just on the health of their core business.

The large scale of cash and financial investments requires extremely tight internal risk management. Any errors in capital allocation, bond selection or lending partners can cause losses.

Looking at the balance sheet, MWG's debt payable at the end of June was 50,985 billion VND, an increase of nearly 8,700 billion VND compared to the beginning of the year.

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

With equity, MWG has over VND 30,016 billion, including equity capital of VND 14,796 billion and undistributed profit of VND 14,297 billion, both increased.

To pay for all additional loans, MWG also spent 700 billion VND on "interest expense", an increase of nearly 190 billion VND compared to the same period.

In general, net profit from "money trading" is still making an important contribution to MWG's business picture.

In the first 6 months of 2025, MWG had net revenue of VND 73,754 billion, up 12.2% over the same period.

Of which, The Gioi Di Dong chain reached 16,595 billion VND, accounting for 22.8% of total revenue; Dien May Xanh chain reached 32,895 billion VND, accounting for 44.6%; and Bach Hoa Xanh chain contributed 22,643 billion VND, accounting for 30.7%.

After deducting expenses, MWG's net profit reached VND3,205 billion, up 54%.

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

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

Back to topic

BINH KHANH

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