X-Stock | DMX KKN: DMX IPO roadmap in 2026

INVESTMENT THESIS (Please refer to BSC’s detailed initiation report on MWG for further analysis)

• Based on the assumption of a successful IPO, BSC expects DMX’s NPAT to grow by +48% LFL in 2026 and +13% YoY in 2027, driven by its ability to capture structural shifts in the retail sector, the effectiveness of its “quality over quantity” strategy, and improved cash flow efficiency from more than VND 14,350 billion in IPO proceeds. In addition, growth pillars 2–5 — including leverage from the consumer services ecosystem, monetization of DMX technician services, the Super App, and the potential of EraBlue — are expected to drive growth in the coming period.
• BSC has not yet issued a recommendation on DMX shares, as the company is still completing the legal procedures for its official IPO and listing on HOSE. However, based on currently available information, we estimate DMX’s one-year fair value for 2026–2027 at VND 94,500/share, implying an upside of +18% versus the IPO price. This is based on a target P/E of 12x, which reflects the lagged impact of macroeconomic conditions and a high interest-rate environment, together with an estimated minimum dividend yield of around 4–5% per year for 2026–2027.

IPO HIGHLIGHTS

HSX-DMX: The expected offering price is VND 80,000/share.

• The total offering value is VND 14,360 billion, equivalent to (approximately USD 600 million), representing 16.3% of pre-IPO ownership.
• Valuation: DMX’s current market capitalization is estimated at around USD 3.3 billion and could approach USD 4.0 billion after the IPO is completed.
• IPO subscription and roadshow period: DMX shares are expected to be offered to investors, with share purchases and deposits made from May 27 to June 17, 2026.
• Listing timeline: DMX is expected to complete the listing process and begin trading on HOSE in early August 2026.

BSC’s view: The proposed valuation is broadly in line with BSC’s expectations, with a 5% difference versus BSC’s latest pre-IPO valuation estimate. We believe this valuation protects the interests of existing shareholders of the parent company, MWG, while reflecting DMX’s absolute leading market share in Vietnam’s ICT and consumer electronics segments, supported by its effective operational optimization strategy.

• At the proposed IPO price, DMX is suitable for new investors seeking: (1) an immediate cash dividend of VND 4,000/share, equivalent to a dividend yield of 5%, together with a regular dividend payout policy of at least 50% of annual NPAT, corresponding to an estimated dividend yield of 9.4% per year — attractive relative to 12-month term deposits; (2) medium-term growth potential driven by financial services, after-sales services, the Super App ecosystem, and the EraBlue chain; and (3) an investment opportunity for foreign investors, given that MWG, the parent company, has already reached its foreign ownership limit.