Joint Stock Company The Gioi So (Digiworld, stock code: DGW) recently held an online investor meeting, revealing its Q3 business plan. The company targets pure revenue of VND 6,000 billion and net profit of VND 120 billion, an increase of 11% and 18%, respectively, compared to the same period in 2023.
In Q3, Digiworld will distribute all MSI products and introduce additional Xiaomi products, including refrigerators and air conditioners. The laptop segment is expected to grow during the “back-to-school” season, and the company plans to launch various AI laptops from now until the end of the year. “AI will significantly drive the demand for computer replacements. It is predicted that by 2027, about 70-80% of laptops sold will have AI support. This trend will boost the laptop market,” said a Digiworld representative.
Additionally, the wave of phone replacements will also support the growth of the ICT segment. Mr. Doan Hong Viet, Chairman of Digiworld, shared that while the 2G shutdown will happen in September, customers have already started upgrading their devices. There is a tendency for consumers to switch to affordable smartphones or feature phones with 4G support.
Digiworld primarily focuses on two brands, iPhone and Xiaomi, and both are expected to grow. According to unofficial information, the soon-to-be-released iPhone 16 will feature Apple Intelligence, a larger display without increasing the device’s size, and a higher-capacity battery. Digiworld plans to boost sales for the iPhone 16 compared to the iPhone 15, but not significantly due to weak demand.
For the full year 2024, Digiworld has set an ambitious business plan, aiming for pure revenue of VND 23,000 billion and net profit of VND 490 billion, representing a 22% and 38% increase, respectively, compared to 2023. While the phone business is recovering slowly, Digiworld expects double-digit growth in all other product categories.
Previously, Digiworld announced its Q2/2024 financial results, with revenue of VND 5,020 billion and net profit of VND 90 billion, a 9% and 8% increase, respectively, compared to the same period in 2023. This is the second consecutive quarter that the company has achieved positive profit growth year-over-year.
According to Digiworld, the Laptop and Tablet segment grew by 20% in Q2, despite it being a low season for this category. This growth was attributed to the product replacement cycle and the launch of a series of AI-integrated laptops. The Home Appliance segment also experienced a 20% growth compared to the previous year.
For the first six months of the year, Digiworld achieved revenue of over VND 10,000 billion and net profit of VND 182 billion, a 17% and 12% increase, respectively, compared to the same period last year. With these results, the company has accomplished 43.5% of its revenue plan and 37% of its profit target for the full year.
Regarding the feasibility of the business plan, Mr. Doan Hong Viet shared that the company typically achieves around 40% of its annual targets in the first half of the year, but this year it is slightly lower. However, Digiworld remains confident in completing its annual plan, thanks to new products.
Moreover, the Chairman also provided insights into Digiworld’s future business strategy, which includes pursuing several M&A deals. However, these deals are unlikely to be finalized this year and may be pushed to 2025.
Digiworld intends to utilize its idle funds for M&A activities rather than financial investments like stocks and bonds, as some other companies have done. While M&A will eventually facilitate Digiworld’s “go global” initiative, the company is not prioritizing it at the moment. Mr. Doan Hong Viet believes that the domestic market still offers ample growth opportunities for Digiworld, which is a simpler approach than “going global.”
In 2024, the pharmaceutical segment is expected to achieve double-digit growth but will not contribute significantly to Digiworld’s overall performance. “The pharmaceutical industry has certain hidden barriers that can be challenging. It’s not easy for a company to navigate this industry while adhering to all the rules,” shared the Chairman of Digiworld.
Regarding Achison, the company acquired to distribute personal protective equipment and industrial equipment such as grinding stones, cutting stones, and polishing machines, is expected to generate VND 800 billion in revenue in 2024. Achison’s Q2 performance was ordinary, partly due to the lack of progress in local production in Vietnam. The demand in the European and American markets has not been favorable, resulting in fewer orders for Vietnam.
As for B2X, a company specializing in “after-sales services,” Mr. Doan Hong Viet shared that while the revenue is not substantial, the company is still profitable. Another company in this field, D Care, is also profitable. Digiworld plans to develop the D Care brand and expand its warranty locations from 18 to 30-35 sites in all major cities. This strategy will also support the development of Vietmoney in the secondhand market.
Additionally, the Chairman of Digiworld shared his thoughts on the recent closures of many retail stores by large retailers. He attributed this to the growing popularity of online channels, eliminating the need for extensive physical store coverage. Brand shops aim to provide customer touchpoints, and their numbers don’t need to reach the thousands.
Digiworld sees strong growth in consumer goods segment, earns nearly 19,000 billion VND in revenue in 2023.
In 2023, Digiworld achieved a revenue of 18,818 billion VND and a profit of 354 billion VND. The company reached 94% of its revenue target and 89% of its annual plan.
CTR stock continues to soar, Digiworld Chairman Doan Hong Viet makes substantial profits as a major shareholder in Viettel Construction after six months.
Based on the current CTR market value, Mr. Doan Hong Viet alone is making a profit of over 50 billion VND with the stocks he bought six months ago. This figure does not include the previous ownership at Viettel Construction, both direct and indirectly through related organizations.
