ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

Mobile World Investment Corporation: Discount to Other Consumer Stocks Is Asymmetric

Vietnam's Economy Trounces Other Frontier Markets: 2018 Pullback Provides Solid Entry Point

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Mobile World Investment / Equity Bottom-Up

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On the tail of last years Smartkarma Originals series on ASEAN retail, we continue to search out compelling retail stories in the region. <a href="https://www.smartkarma.com/entities/mobile-world-investment-corp" target="_blank" data-smartkarma-citation="entities:22638:1" rel="noopener">Mobile World Investment (MWG VN)</a> is one of Vietnam's most dynamic and interesting transformation stories in the consumer space, with exposure from mobile phones, to laptops, air conditioners, and modern trade groceries. The recent correction in the share price, despite positive results, presents an interesting entry point.
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It started life as a mobile phone retailer through its “thegioididong” (TGDD) brand and subsequently built its “Dien May Xanh” (DMX) consumer electronics retail chain but as penetration in those areas has reached higher levels, the company has been moving into the underpenetrated grocery space through its “Bach Hoa Xanh” (BHX) brand grocery store. 
The company added more than two new stores per day in 2019 across all formats, ending the year with more than 3,000 stores, with both electronics retailer DMX and grocery retailer BHX surpassing 1,000 stores each. Despite its rapid expansion the company managed to improve margins last year.
The company will continue to expand rapidly over the next two years by opening new stores in other Provinces in South and Central Vietnam. 
The company successfully upgraded 500 of its Mini-DMX stores, where the number of products on display is doubled or even tripled. This transformation has seen sales increase by as much as 30% of the new format stores. 
<a href="https://www.smartkarma.com/entities/mobile-world-investment-corp" target="_blank" data-smartkarma-citation="entities:22638:1" rel="noopener">Mobile World Investment (MWG VN)</a> looks attractive from a valuation standpoint trading on 9.8x FY20E PER and 7.8x FY21E PER, with forecast EPS growth of +25% and +26% for FY20E and FY21E respectively. This is at a significant discount to peers, despite higher forecast growth rates.


On the tail of last years Smartkarma Originals series on ASEAN retail, we continue to search out compelling retail stories in the region. Mobile World Investment (MWG VN) is one of Vietnam's most dynamic and interesting transformation stories in the consumer space, with exposure from mobile phones, to laptops, air conditioners, and modern trade groceries. The recent correction in the share price, despite positive results, presents an interesting entry point.

It started life as a mobile phone retailer through its “thegioididong” (TGDD) brand and subsequently built its “Dien May Xanh” (DMX) consumer electronics retail chain but as penetration in those areas has reached higher levels, the company has been moving into the underpenetrated grocery space through its “Bach Hoa Xanh” (BHX) brand grocery store. 
The company added more than two new stores per day in 2019 across all formats, ending the year with more than 3,000 stores, with both electronics retailer DMX and grocery retailer BHX surpassing 1,000 stores each. Despite its rapid expansion the company managed to improve margins last year.
The company will continue to expand rapidly over the next two years by opening new stores in other Provinces in South and Central Vietnam. 
The company successfully upgraded 500 of its Mini-DMX stores, where the number of products on display is doubled or even tripled. This transformation has seen sales increase by as much as 30% of the new format stores. 
Mobile World Investment (MWG VN) looks attractive from a valuation standpoint trading on 9.8x FY20E PER and 7.8x FY21E PER, with forecast EPS growth of +25% and +26% for FY20E and FY21E respectively. This is at a significant discount to peers, despite higher forecast growth rates.

Mobile World Investment (MWG VN) - From Mobile Phones to Groceries