Digiworld Corporation​ – ​Outperform​ (DGW : HSX​ – ​Technology) 

Ngày đăng July 21, 2018

Digiworld Corporation​ – ​Outperform​ (DGW : HSX​ – ​Technology) 

  • Digiworld (DGW – Outperform) reported very strong 1H earnings with sales coming in at VND 2,641 billion (+70% y/y) while net profit was reported at VND 41.6 billion (+44% y/y). The key growth driver was the handset segment which saw 460% y/y growth in sales. 
  • In our earnings model we forecast that DGW will make sales of VND 5,515 billion (+44.3% y/y) and a NPAT of VND 105.9 billion (+35.0% y/y) this year. 
  • FY2018 strong earnings growth thanks to (1) a strong handset segment as the market expansion services (MES) work for Xiaomi; and (2) also a contribution from high-margin own brands in healthcare supplements and consumer goods. 
  • Market expansion services (MES) are services that helps goods penetrate into an existing or a new market and achieve desired market share during a certain period of time. 
  • Our fair value price is VND 29,600 which values DGW at a 12.0xs forward P/E on FY2018 numbers. Current price looks attractive on FY2018 forward P/E. 
  • Reiterate Outperform. 

 

 

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