DGW run out of vol. Lying on MA 50 RSI 50 Golden cross
Q2/2023 Result - DGW -
REVENUE BACK compared to the previous quarter
💠1. Q2/2023 business results
* Sales of Laptops
and Tablets (Laptop and MTB)
and mobile phones
in Q2/2023
🌝grew strongly compared to the previous quarter,
increasing by
+23% QoQ and +15% QoQ respectively,
thanks to consumer demand.
Consumption of ICT products
in Q2/2023 showed signs of recovering from the bottom in Q1/2023
(usually Q2 is the low quarter for ICT products).
🔮According to DGW,
the revenue of the ICT industry
in June 2023
is the 🌝highest monthly revenue
in 1H2023.
🌝* Office equipment
growth is low +7% QoQ in Q2/2023
as businesses limit
spending on office equipment innovation.
DGW has acquired additional brand Lexmark
(providing printing solutions)
in Q2/2023.
🌝* High growth in
consumer goods
+42% QoQ and +83% YoY
thanks to DGW entering the beverage industry with 2 brands, ABInbev (beer)
in Q1/2023
and
Lotte Chilsung (milk soda and juice)
in Q2 2023.
🔮Dividend in 2022: 1,000 VND/share,
expected to be distributed in October 2023.
DGW's dividend policy is to pay 20-40% of NPAT in cash.
💠2. Assessing DGW's Prospects
💠2.1. Outlook on business results
Q3/2023 plan:
Net sales of 5,200 billion VND (+13% QoQ and -14% YoY)
and EAT 100 billion VND (+20% QoQ and -45% YoY).
DGW expects revenue in Q4/2023 > Q3/2023 > Q2/2023.
💠2.2. Prospects of some segments
Laptops and MTBs and mobile phones: demand will explode in 2H2024 due to
(1) high consumption demand in 2H2021 thanks to the trend of studying and working online during the Covid epidemic
and
(2) the long cycle of using ICT products ~3 years long.
The ICT market will have🌝 strong growth,
especially in Q4/2023,
a return to a positive growth cycle compared to the same period last year,
due to the low background of Q4/2022.
Q1/2022 bottom of market demand.
The cycle of laptops and MTBs will fall in Q3,
corresponding to the time of returning to school;
while the cycle for mobile phones will enter Q4
when Apple, Samsung and Xiaomi launch new products to meet shopping demand during Christmas and Lunar New Year.
🌝* Laptops and MTBs:
the market is expected to 🌝grow by over 10%/year
in the medium term (next 5 years),
in both segment
(1) businesses thanks to the trend of Vietnam becoming the world's factory, enterprises FDI enterprises
in Vietnam have to invest more in laptops
and
(2) individuals thanks to a lower penetration rate than Thailand.
🌝* Mobile phones:
the market is expected to 🌝grow below 10%/year in the medium term,
increasing both in quantity and in selling price
(selling price increases more strongly).
🌝* Consumer goods:
Great potential when the market size is large 50 billion USD,
but there are many big competitors,
the competition situation is relatively difficult.
🌝 * Industrial equipment:
Benefiting from the trend of shifting production from China to Vietnam,
helping the demand for industrial equipment products grow strongly.
DGW assesses that this segment has great growth demand and does not have many big competitors
in the industry.
Achison subsidiary
(providing labor protection solutions)
has just opened a new branch
in Hanoi in 1H2023.
🌝 ---> Still on the expected route
REVENUE BACK compared to the previous quarter
💠1. Q2/2023 business results
* Sales of Laptops
and Tablets (Laptop and MTB)
and mobile phones
in Q2/2023
🌝grew strongly compared to the previous quarter,
increasing by
+23% QoQ and +15% QoQ respectively,
thanks to consumer demand.
Consumption of ICT products
in Q2/2023 showed signs of recovering from the bottom in Q1/2023
(usually Q2 is the low quarter for ICT products).
🔮According to DGW,
the revenue of the ICT industry
in June 2023
is the 🌝highest monthly revenue
in 1H2023.
🌝* Office equipment
growth is low +7% QoQ in Q2/2023
as businesses limit
spending on office equipment innovation.
DGW has acquired additional brand Lexmark
(providing printing solutions)
in Q2/2023.
🌝* High growth in
consumer goods
+42% QoQ and +83% YoY
thanks to DGW entering the beverage industry with 2 brands, ABInbev (beer)
in Q1/2023
and
Lotte Chilsung (milk soda and juice)
in Q2 2023.
🔮Dividend in 2022: 1,000 VND/share,
expected to be distributed in October 2023.
DGW's dividend policy is to pay 20-40% of NPAT in cash.
💠2. Assessing DGW's Prospects
💠2.1. Outlook on business results
Q3/2023 plan:
Net sales of 5,200 billion VND (+13% QoQ and -14% YoY)
and EAT 100 billion VND (+20% QoQ and -45% YoY).
DGW expects revenue in Q4/2023 > Q3/2023 > Q2/2023.
💠2.2. Prospects of some segments
Laptops and MTBs and mobile phones: demand will explode in 2H2024 due to
(1) high consumption demand in 2H2021 thanks to the trend of studying and working online during the Covid epidemic
and
(2) the long cycle of using ICT products ~3 years long.
The ICT market will have🌝 strong growth,
especially in Q4/2023,
a return to a positive growth cycle compared to the same period last year,
due to the low background of Q4/2022.
Q1/2022 bottom of market demand.
The cycle of laptops and MTBs will fall in Q3,
corresponding to the time of returning to school;
while the cycle for mobile phones will enter Q4
when Apple, Samsung and Xiaomi launch new products to meet shopping demand during Christmas and Lunar New Year.
🌝* Laptops and MTBs:
the market is expected to 🌝grow by over 10%/year
in the medium term (next 5 years),
in both segment
(1) businesses thanks to the trend of Vietnam becoming the world's factory, enterprises FDI enterprises
in Vietnam have to invest more in laptops
and
(2) individuals thanks to a lower penetration rate than Thailand.
🌝* Mobile phones:
the market is expected to 🌝grow below 10%/year in the medium term,
increasing both in quantity and in selling price
(selling price increases more strongly).
🌝* Consumer goods:
Great potential when the market size is large 50 billion USD,
but there are many big competitors,
the competition situation is relatively difficult.
🌝 * Industrial equipment:
Benefiting from the trend of shifting production from China to Vietnam,
helping the demand for industrial equipment products grow strongly.
DGW assesses that this segment has great growth demand and does not have many big competitors
in the industry.
Achison subsidiary
(providing labor protection solutions)
has just opened a new branch
in Hanoi in 1H2023.
🌝 ---> Still on the expected route
