MWG Update – BUY

MOBILE WORLD INVESTMENT CORP (MWG VN)

The company sustained outstanding growth on the back of margin expansion in the ICT chains and BHX’s ongoing scale-up and earnings growth. We revise our NPATMI projection for 2026 up by 13% to VND11,122bn (+58.1% YoY), considering the 1H beat in tandem with reflecting a reduction in MWG’s stake in post-IPO DMX. Our target price is VND94,000/share by YE2026, 14% lower than the prior update given elevated cost of equity, equivalent to a total return of 32.6%. Rating BUY.

Vigorous earnings extended on solid revenue growth, gross margin expansion and heightened operating efficiency, complemented by rosy financial profit on a rich cash base. Net revenue and EAT jumped by 29.6% YoY and 102% YoY in 2Q2026, bringing 1H results to VND95,213bn (+29.1% YoY; 7M: VND111,394bn, +28.8% YoY) and VND6,112bn (+90.7% YoY), respectively.

The main pillars – TGDD & DMX chains – gained steam with YoY margin expansion and strong revenue performance. The top-line growth was fueled by a partial recovery in demand, strengthened consumer financing programs (+47% YoY), higher product prices stemming from new features/technologies and the memory chip shortage, facilitating a 29.6% YoY rise in 2Q and 29% YoY to VND75,200bn in 7M. Margin benefited from an improved product mix along with cost optimization and effective procurement.

Network expansion in the joint venture Era Blue recorded 283 stores in operation at the end of Jul 2026 (+157 stores YoY and +102 stores YTD). However, its profit contribution to MWG remained modest albeit doubling YoY (1H2026: VND28bn).

BHX kept scaling — and kept getting more profitable. Net revenue rose by 30.6% YoY in 2Q and 28% YoY to VND33,900bn in 7M2026, while earnings rocketed nearly 4.5x YoY to VND910bn in 1H2026. BHX’s expansion strategy underscores deepening its footprint in existing markets, boosting its emergence in northern Vietnam while new-store efficiency is also a focal.

Strong 7M2026 performance support our projections that the company will likely far exceed its full-year targets. We project the company’s net revenue at VND194,335bn (+24.6% YoY) and NPATMI at VND11,122bn (+58.1% YoY) in 2026, factoring in the 1H beat and a decrease in MWG’s stake in post-IPO DMX Inv. JSC (HSX: DMX). These stunning rates may not persist in the coming years considering the high base effect; however, decent growth of 14-18% is expected given that BHX remains the growth engine and TGDD & DMX chains could continue to generate stable cash flow.