MWG — 2025 AGM — Key Takeaways

We attended MWG’s AGM on Apr 26^th, 2025.

Key Highlights

• The company disclosed impressive earnings results in 1Q25… Consolidated sales reached VND 36.0tn (+44% QoQ/+15% YoY) and after-tax profits reached VND 1.5tn (+82% QoQ / +71% YoY) in 1Q25. Notably, ICT&CE retail segment unexpectedly played as a key growth driver this time. Specifically:
• ICT&CE retail segment (including ĐMX/TGDĐ/TopZone) posted total revenue of VND 24.2tn in 1Q25 (+6% QoQ / + 14% YoY) despite the net closure of 211 outlets YoY. These chains together accounted for 67% of MWG’s 1Q25 total sales. MWG targets 70%-80% market share of this segment by 2030E, up from the current level of 40%-50%.
• Grocery retail sales were VND 11.0tn (+2% QoQ / +20% YoY) in 1Q25. Sales per store remained at VND 2.0-2.1bn. BHX’s footprint expansion picked up in 1Q25, with increases of +232 outlets YTD/+306 outlets YoY to reach 2,022 outlets nationwide at 1Q25, which already exceeds our full-year assumption. The company targets earnings of VND 500bn from BHX this year (c.10% of consolidated 2025E PAT guidance).
• An Khang Pharmacy posted 1Q25 sales of VND 515bn, with 326 pharmacies in operation by the end of the quarter.
• Mom and baby shops – AvaKids recorded sales of VND 313bn. The online channel (50% of total sales) is the key driver, while the number of AvaKids stores (64 outlets as of 1Q25) was flat QoQ and YoY.
• EraBlue – The Indonesian ICT&CE retail chain posted sales of VND 700bn (+7% QoQ/+88% YoY, per our estimates) with 95 stores as of 1Q25.
• …and targets ongoing growth in 2025E as MWG continues to focus on its core retail chains (i.e., TGDĐ, ĐMX, and BHX). Please see the details of MWG’s 2025E guidance in our note of Feb 2025.

2025E cash dividend of VND 1,000 per share, equivalent to a dividend yield of 1.7%. This is double the 2024 level of VND 500 per share.

Our View

We reiterate our BUY recommendation on MWG with a target price of VND 76,100 per share, implying 12-month total shareholder return of 27.5%.

CE/ICT recovery is happening earlier than we anticipated. We had expected MWG’s electronics retail business to recover, but only starting from 2H25, as discussed in our Jan 8 company report.

MWG continues to post ICT&CE revenue growth despite sluggish consumer demand and a reduction in the number of stores, indicating success in its strategy of optimizing the high-performing retail outlets/online channel, diversifying the product portfolio, and enhancing cross-selling capabilities.

The number of new BHX stores opened in 1Q25 (+232 stores YTD) has surpassed our full-year forecast (i.e., 150 stores for 2025E), implying potential upside to our forecasts and valuation.

Please access the link for details: MWG — Express note — 2025 AGM