This was shared by the Chairman of the Board of Directors of HOSE: DGW, at an investor meeting held in the afternoon of August 6.
Q3 outlook: profit of VND 120 billion, confident in completing the 2024 plan
According to the plan shared by the representative of DGW, from Q3 2024, the company will distribute new products from MSI such as laptops, PCs, monitors, mice, keyboards, and components. Furthermore, by the end of 2024, they will also distribute home appliances such as air conditioners and refrigerators from Xiaomi.
Also, in September 2024, the government will implement the 2G network shutdown, creating a wave of new phone purchases, especially for affordable smartphones.
According to Chairman Doan Hong Viet, although the shutdown is not until September, consumers have been replacing their phones for a while now. They have options to either upgrade to affordable smartphones – DGW is currently working with ZTE and TCL for this, or opt for feature phones that support 4G.
Moreover, Q3 is also the time for phone and laptop replacements after the peak in 2021, along with the distribution of new MSI products, DGW expects Q3 revenue to reach VND 6,000 billion, an 11% increase compared to the same period last year, with a profit after tax of VND 120 billion, an 18% increase.
Source: DGW
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Looking at the full-year 2024 plan, the Chairman of DGW is confident that the company can achieve it, even though only 37% of the plan was completed in the first two quarters.
“Usually, in the first half of the year, DGW achieves 40% of the full-year plan, but with the recent results, we are slightly below that. However, DGW remains confident in completing the plan with the momentum from new MSI and Xiaomi products, along with the expectation of new FMCG products to boost sales”, said Chairman Doan Hong Viet.
Purchasing power for phones and laptops in the second half of the year is not expected to be strong, but FMCG is projected to grow significantly
In Q3, the laptop segment will experience the “back to school” season, and towards the end of the year, many laptops with integrated AI, using Qualcomm chips, and featuring thinner and lighter designs will be introduced. However, the Chairman of DGW noted that these products will not be cheap, so they are unlikely to create a significant boom, but there will still be growth compared to the same period last year.
Regarding phones, according to unofficial information, the iPhone product line will be equipped with Apple Intelligence and will feature larger screens and batteries for longer usage times. These are the key highlights. DGW plans to increase production for the iPhone 15 launch, but not by a significant amount, as the fundamental demand is still weak.
In addition to iPhones, DGW also distributes products from Xiaomi, and this brand is performing quite well, gaining market share from other Chinese labels, so growth is expected in this area as well.
According to the Chairman of DGW, it is clear that the markets for laptops and phones are experiencing low growth. However, there is a trend of distributors expanding and even absorbing smaller units, and DGW will benefit from this.
DGW is also venturing into office equipment, and there is still ample room for growth in this sector due to economic development, business growth, and increasing foreign investment, all of which drive the demand for office equipment.
Moreover, there is a trend of investing in Data Centers in Vietnam due to the advantage of low electricity costs, so some companies are bringing their Data Centers to Vietnam. DGW can take advantage of this trend as they have many products to offer, especially the upcoming server products from MSI.
Commenting on the future growth rate of the current main industries, the Chairman of DGW projected that laptops and phones will grow at a rate of less than 10% per year for the next few years, while other segments will achieve double-digit growth.
As for FMCG, there is a high potential for growth, and DGW is focusing on the middle and high-income customer segments, which are growing rapidly, so there is still a lot of room for FMCG growth.
DGW will promote the DCare brand
After the acquisition of 100% of the shares in B2X Vietnam, a company specializing in after-sales services with 18 professional warranty centers nationwide, along with DGW‘s own DCare warranty centers, the Chairman of DGW has high hopes for the potential of the after-sales service system in the future.
According to the Chairman, this combination will help DGW consolidate its position in all industries related to electricity, electrical appliances, and after-sales services, including laptops, phones, TVs, refrigerators, and more. He also believes that having this system will enhance DGW‘s ability to negotiate with distributors.
“DGW will promote the DCare brand (a combination of B2X and the existing DCare) and expand the number of warranty centers from 18 to around 30-35, aiming to have a presence in major cities. This will also assist DGW in its strategy to work with Vietmoney to sell secondhand products”, shared the Chairman of DGW about their future plans.
Hot-selling new generation brick-style phone
From March 1st, the Ministry of Information and Communications has officially implemented a solution to block unlicensed 2G mobile phones from connecting to the mobile telecommunications network.
