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MWG’s Jan-Sept profit plummets 98% y-o-y

The Saigon Times

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HCMC – Mobile World Investment Corporation (MWG) reported a 97.8% drop in profit in January-September of 2023 over the same period in 2022.

With profit of VND77.5 billion, the firm achieved only 1.8% of its annual profit target. MWG’s revenues for this period were VND86.8 trillion, down by 15.5% year-on-year.

In the third quarter of 2023, MWG saw a 5.4% year-on-year drop in revenue, at VND30.3 trillion, while its net profit fell by 95.7% to VND38.8 billion.

The retailer’s gross profit margins decreased from 23.1% to 15.3%, while net profit margins shrank from 2.83% to 0.13%.

Its revenues from financial activities surged by 77.5% to a total of VND619.1 billion. However, financial costs also increased by 2.4% to VND444.9 billion. Sales and administrative expenses decreased by 18.4%, equivalent to a reduction of over VND1 trillion to VND4.6 trillion.

MWG’s core business operations incurred a loss of VND422.3 billion in the third quarter, a stark contrast to the VND1.3 trillion profit seen in the same period of the previous year.

MWG attributed the profit slump to persistently weak demand for mobile phones and electronic devices, as consumers remained cautious in their spending decisions due to economic uncertainties.

As of September 30, 2023, MWG’s total assets increased by 5% compared to the beginning of the year to VND58.6 trillion. Key assets include cash and short-term financial investments, accounting for 39.7% of total assets, inventory making up 39%, and long-term fixed assets at 12.57% of total assets.

The firm increased its borrowings by 38.2% compared to the beginning of the year to VND22.9 trillion, representing 39.1% of the total capital structure. These borrowings are split between short-term debts, totaling VND17 trillion, and long-term debts, amounting to VND5.9 trillion.

MWG fell to its daily lower limit of VND37,700 per share at the close today, October 31, with a matching volume of 13.2 million shares.

There were 448 losers and 66 winners on the Hochiminh Stock Exchange, including 52 stocks plunging to their floor prices. The VN-Index dropped by 14.21 points, or a decline of 1.36%, ending at 1,028.19 points.

Trading activity surged, with over 755.5 million shares valued at nearly VND14.9 trillion changing hands. These figures represented a 41% increase in trading volume and a 47% rise in value compared to the previous session. Block deals accounted for nearly 50 million shares, amounting to VND1.2 trillion.

In October, the VN-Index saw a steep fall of around 126 points, equal to a 10.9% decline, marking its most significant drop since September 2022.

In the VN30 basket, MWG was the only stock to hit the floor today. SAB, SSI, GVR, and VRE  decreased by 6.7%, 6.4%, 6.1%, and 3.9%, respectively.

Several other bluechips, including BID, POW, FPT, VIC, and PLX, recorded losses ranging from 2% to 2.9%. With 10 advancers and 16 decliners, the VN30-Index shed 8.25 points to 1,039.38 points.

With 36.4 million shares being matched, SSI took the lead by trading volume, closely followed by securities stock VIX with 36 million shares being transacted.

Decliners tripled gainers on the Hanoi Stock Exchange by a ratio of 131 and 37. The HNX-Index dipped 5.17 points, or 2.44%, 206.17 points, with 102.6 million shares worth VND1.8 trillion changing hands.

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