On March 29, Digiworld Corporation (Digiworld - stock code: DGW) announced the documents for the annual general meeting of shareholders and the business plan for 2023. Accordingly, Digiworld plans to achieve revenue of VND 20,000 billion and profit after tax of VND 400 billion, down 9% and 42% respectively compared to 2022.
This plan is said to have changed compared to the Resolution announced in February 2023. Previously, Digiworld had just announced the Board of Directors' Resolution approving the 2023 business plan, specifically the company's revenue is expected to reach over VND 25,100 billion, after-tax profit is expected to reach VND 787 billion, up 14% and 15% respectively compared to 2022.
Thus, after just over a month, the planned figure has been significantly reduced. In terms of profit alone, the target has decreased by nearly 50%. Explaining the change in business plan, Digiworld's Board of Directors realized that the economy in general and consumer demand in particular have declined.
Regarding the 2022 dividend plan, Digiworld plans to submit to shareholders a cash dividend plan at a rate of 10%, equivalent to each share receiving 1,000 VND, expected to be implemented this year.
Before that, Digiworld will also present to shareholders a plan to buy back treasury shares. Specifically, the company wants to reclaim shares issued under the employee stock option plan (ESOP) of employees who have resigned under the ESOP issuance regulations. The buyback will be carried out with its own capital with a quantity of 2,500 treasury shares.
Digiworld is currently one of the leading enterprises in the field of trading and manufacturing of information technology equipment, components and software. After more than 2 decades of operation, DGW has been chosen by 30 world-famous technology brands as the official market development and distribution service provider in the Vietnamese market.
The company's two key areas are distributing tablets and laptops under the brands HP, Dell, Asus... (accounting for 35% of revenue) and distributing mobile phones under the brands Xiaomi, iPhone (accounting for 35% of revenue). Currently, the company has a system of 16,000 distributors nationwide.
Regarding the financial picture, for the whole year of 2022, Digiworld recorded VND 22,059 billion in revenue and VND 684 billion in profit after tax, both up 5% over the same period last year. With the achieved results, the company has only completed 84% of the revenue plan and 86% of the annual profit target.
DGW stock performance over the past year (Source: TradingView).
Of which, the laptop and tablet segment brought in VND 7,027 billion in revenue in 2022, completing 72% of the plan. In terms of mobile phone sales alone, the company's annual revenue also reached VND 10,759 billion, up 9% compared to 2021 results and was also the segment contributing the largest revenue to Digiworld.
The remaining industries are office equipment, household appliances and consumer goods with lower income, earning VND 3,876 billion and VND 397 billion, respectively, up 36% and 5.6% compared to 2021 sales.
The company also forecasts that the general market situation will continue to be difficult until at least mid-2023, so consumers will continue to tighten spending, and demand for non-essential items such as phones, tablets, and laptops may decrease significantly.
In addition, 2023 will still be difficult for Digiworld's core industries when the peak of ICT consumption like the Covid-19 season has passed.
On the stock market, DGW shares are drifting towards a 21-month low. At the end of the trading session on March 29, DGW closed down 3.23% to VND 31,450/share, which is 8.6% lower than the bottom in November 2022 .
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