Cash and Stock Dividend Payout
On September 4, the Board of Directors of The Gioi So Joint Stock Company (HOSE: DGW) resolved to distribute 2023 dividends in cash and stocks, with a record date of September 13, 2024.
For the cash dividend, DGW will pay a dividend of 5% (VND 500 per share) on September 25, 2024. With over 167 million shares outstanding, DGW is estimated to pay out more than VND 83.5 billion.
Regarding the stock dividend, DGW will issue over 50.1 million shares (a 30% ratio), equivalent to a total value of over VND 501 billion based on par value. This will be funded by undistributed post-tax profits from the audited consolidated financial statements as of December 31, 2023, amounting to nearly VND 867 billion.
These plans were approved at the DGW 2024 Annual General Meeting of Shareholders held in April 2024.
Another resolution passed at the AGM was the issuance of 2 million shares under an employee stock ownership plan (ESOP), with a one-year lock-up period. With a proposed offering price of VND 10,000 per share, DGW expects to raise VND 20 billion. As per the resolution dated July 3, 2024, the DGW Board of Directors approved this ESOP scheme, intending to issue the shares in the third and fourth quarters of 2024.
Thus, through these two share issuances, DGW plans to increase its outstanding shares to nearly 219.2 million, equivalent to a charter capital of nearly VND 2,192 billion.
DGW AGM: Net profit of VND 92 billion in Q1, aiming for 2-3 M&A deals annually
The assembly also passed ambitious business targets for 2024, with projected net revenue of VND 23,000 billion and net profit of VND 490 billion, up 22% and 38%, respectively, from the previous year’s results.
DGW achieved net revenue of VND 9,993 billion and net profit of nearly VND 182 billion in the first half of 2024, representing a 17% and 12% increase from the same period last year. These figures correspond to 43% and 37% of the full-year revenue and profit targets, respectively. DGW attributed the quarterly revenue growth solely to its core business operations:
Laptop and tablet computers segment grew by 11% and met 41% of the plan. The launch of a series of AI laptops in Q2 provided new growth momentum after a prolonged period of stagnation.
Mobile phones segment expanded by 14% and achieved 54% of the plan. This growth was driven by new iPhone 15 models and Xiaomi’s latest phone releases in Q1.
Office equipment segment increased by 32% and fulfilled 34% of the plan. Smartwatches, printers, servers, storage devices, and computer components, along with the consolidation of safety equipment revenue from Achison, contributed to this growth.
Home appliances segment rose by 24% and accomplished 39% of the plan, mainly due to strong sales of air purifiers and vacuum robots from Xiaomi. However, the weakening macro economy and reduced demand for non-essential items like home appliances, coupled with the freeze on real estate projects (a significant customer channel), resulted in this segment underperforming expectations.
Consumer goods segment grew by 19% and attained 29% of the plan. This growth was driven by beer sales from Abinbev and fruit juices from Lotte Chilsung.
Source: DGW
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At an investor meeting on August 6, DGW disclosed its Q3/2024 business plan, targeting net revenue of VND 6,000 billion and net profit of VND 120 billion, an increase of 11% and 18%, respectively, from Q3/2023.
According to the plan shared by DGW representatives, the company will distribute new products from MSI, including laptops, PCs, monitors, mice, keyboards, and components, starting in Q3/2024. Additionally, by the end of 2024, they will also distribute home appliances such as air conditioners and refrigerators from Xiaomi.
Furthermore, in September 2024, the government will discontinue 2G signals, creating a wave of new mobile phone purchases, especially affordable smartphones.
At the meeting, Chairman Doan Hong Viet expressed confidence in DGW‘s ability to accomplish its 2024 business plan, despite the slower-than-usual performance in the first half of the year.
Source: DGW
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Foreign Leader Steps Down as Deputy CEO
Previously, on August 30, the DGW Board of Directors issued a resolution to dismiss Mr. Shekhar Himanshu from his position as Deputy General Director, effective September 1, 2024, marking the end of his brief five-month tenure.
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Mr. Shekhar Himanshu is an Indian national. Before joining DGW, he served as the Director of Strategy & Trade for Southeast Asia at Whirlpool Corporation from January 2022 to April 2024. Whirlpool is also known as a strategic partner, supplying home appliance products to DGW.
Prior to that, he held significant roles in various organizations, including Executive Assistant to the Chairman of AA Group from March to November 2021, Regional Director for Indonesia and China at Asashi Group from April 2018 to August 2020, and several critical positions at Coca-Cola from February 2010 to March 2018.
Mr. Shekhar Himanshu is married to Ms. Pham Thi Lien, a Vietnamese national, and they have a child named Shekhar An Chi. According to DGW‘s semi-annual report for the first half of 2024, neither he nor his relatives hold any DGW shares.
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On December 23, 2021, DGW officially signed a strategic cooperation agreement with Whirlpool, marking its entry into the home appliance industry, which has an annual market size of $2.4 billion. Under the agreement, DGW is not merely a distributor but a strategic partner, providing comprehensive Market Expansion Services (MES) to Whirlpool in Vietnam. The company aims to capture 10% of the total market size within 3-5 years. Whirlpool Corporation was established in 1911. At the time of the partnership, DGW introduced Whirlpool as the world’s leading manufacturer of kitchen and laundry appliances. Following this collaboration, DGW began distributing Whirlpool’s home appliance products, including refrigerators, washing machines, dryers, and dishwashers, in Q2/2022. |
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