Title MWG_BUY_TP 74,900_Continuing the growth momentum_BSC Company Update
Report Type Phân tích công ty
Source BSC
Bussiness MWG
Detail Date : 12/04/2022
Total pages : 10
Language : English
File Type : .PDF
FileSize : 814 Kb
Download: 180
Download
Vote (You must be logged in to vote)
Short Content

Valuation  

Compared to the latest BUY recommendation report dated 11/23/2021 and the recommendation in the 2022 strategy report (Link),  BSC continues to maintain its BUY recommendation and sets a forward 2022 target price of VND182,200 (upside +35.7% compared to the price on March 7, 2022) based on two methods of P/E (50%) and DCF (50%).
 
Forecasting business results
  • 2022: BSC estimates revenue and profit after tax to reach VND 140,579 billion (+14.3 percent YoY) and VND 6,501 billion (+33% YoY), respectively. EPS FW 2020 = VND 9,118, PE FW 2021 = 14.9 times
  • 2023: MWG's net revenue and profit after tax are estimated at VND 161,690 billion (+15% YoY) and VND 8,319 billion (+28% YoY), respectively. EPS FW 2020 = 11,666 VND, PE FW 2021 = 11.6 times.
 
Investment perspective
  • Gross margin expansion will be the main support factor for MWG's profit growth in 2022.
  • Optimizing Bach Hoa Xanh continues to move towards breakeven and is expected to reach breakeven point in the second half of 2022.
  • MWG is allowed to trade at a higher PE price when BHX reaches breakeven.
Looking for opportunities to expand revenue growth from new chains such as Topzone, AVAKids – AVASport – AVAFashion – AVAJi – AVACycle chains.
 
Risks 
  • Risks of the ability to recover purchasing power after the Covid-19 epidemic
  • Revenue growth is slow for provincial stores and the ability to optimize costs has not met expectations.
 
Business Update
MWG still recorded positive growth and exceeded the profit plan set out in the context of complicated disease developments. Revenue and profit of MWG reached 124,142 billion dong (+13.3% YoY) and 4,898 billion dong (+25% YoY).