MWG Update- OUTPERFORM

The company announced 89.5% YoY growth in EAT to VND7,076bn in 2025, meeting 108% of our projection, and continues to target a strong upturn of 30% YoY in 2026 by boosting all major chains. We revise 2026 EAT projection up by 18% to VND9,093bn (+28.5% YoY) and target price to VND107,100/share by YE2026. Rating OUTPERFORM.

Net revenue and EAT rose by 16.5% YoY and 89.5% YoY, to VND165,458bn and VND7,076bn in 2025, meeting 101% and 108% of our projections respectively and far exceeding the pre-Covid levels.

Vigorous EAT growth extended throughout quarters of the year, driven by heightened efficiency in all major chains following the store network restructuring, with the SG&A-to-net revenue ratio improving. Besides, financial profit jumped by 32% YoY, giving the bottom line an extra push.

TGDD & DMX chains’ revenue upturn of 18.2% YoY was bolstered by increased sales per store deriving from growth in most of product categories, especially mobile phones, laptops, tablets, etc. Enhanced profitability thanks to a streamlined network continued to fuel their earnings.

BHX marked the first full-year earnings of VND710bn in 2025, surpassing the initial plan by 18%. Its revenue growth posted 14.2% YoY to VND46,937bn on the back of robust store network expansion, which is set to sustain in 2026.

Contribution from the joint venture Era Blue was a profit of VND24bn in 2025, with 181 stores in operation at the end of the year. The chain targets to reach 300 stores by YE2026.

The IPO plan for ICT chains in 2026 has experienced the first steps including rearranging TGDD & DMX chains – into a new entity named Dien May Xanh Investment JSC – and signing consulting contracts. However, other details have yet been disclosed.

For 2026, we project that the company may generate VND182,001bn of net revenue (+16.3% YoY) and VND9,093bn of EAT (+28.5% YoY), 18% higher than our prior projections considering continued efficiency improvements, the management’s strong growth guidance across its key chains and the company’s historical execution track record. Specifically, the company targets growth of 15% YoY in revenue and 20% YoY in earnings for the ICT chains while BHX is set to achieve minimum earnings of VND1,200bn in 2026.