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

  • http://vnstockmarket.net/recommend-s...0%8Btechnology
  • 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.