DMX Pre-listing note- BUY

Dien May Xanh Investment JSC (ticker: DMX) is going to list 1.27bn shares on HSX on Aug 6th, 2026 at a price of VND80,000/share, the same as its IPO price. The company completed its IPO in Jun 2026, with 93% of offered volume being allocated.

The listing price translates to a PER of 12.9x on 2026 EAT plan and 10.3x on our 2026 EAT projection, compared to a median of 13-14x of some global peers and 12x of VNIndex. Using the PER method with a PER of 12x, we give a BUY rating for the stock with a target price of VND93,600bn per share by YE2026, suggesting a total return of 22% including 5% dividend yield.

2026 net revenue and EAT are set at VND122,300bn and VND7,350bn, up by 14.5% YoY and 20.5% YoY on a like-for-like basis (LFL – excluding An Khang and AvaKids, and including contribution of DMX Technician Services) respectively, in 2026.

Strong 1H2026 earnings support our view that the company will likely exceed its full-year targets. Net revenue rose by 31% YoY LFL to VND65,280bn and EAT jumped by 62% YoY LFL to VND4,876bn in 1H2026, fueled by a partial recovery in demand, strengthened consumer financing programs (+49% YoY), higher product prices attributed to new features/technologies and the memory chip shortage and margin expansion from an improved product mix along with effective procurement. Network expansion in the joint venture Era Blue continued, with 261 stores in operation at the end of Jun 2026 (+146 stores YoY and +80 stores YTD). However, its profit contribution to DMX was still modest albeit doubling YoY (1H2026: VND28bn).

We project that DMX may deliver VND9,243bn (+51.5% YoY LFL) in EAT in 2026, 26% higher than the company’s plan.

With confidence on the ICT market’s remaining growth potential, DMX aims to generate a CAGR of 11% in net revenue and 16% in EAT in 2025-2030. The drivers comprise optimizing store performance, promoting consumer financing services, expanding installation & maintenance services (DMX Technician services) both internally and externally, developing customer relationship app into an integrated multi-service online platform, and accelerating expansion and profitability of the affiliate Era Blue.

While the targets look relatively challenging at the first glance given a certain degree of market saturation due to high penetration rates of many devices alongside the company’s increasing base, we anticipate that demand for replacement, upgrading and adoption of new features/technologies (AI, 5G), etc. likely support the company to narrow the gap to its targets.