Foreign investors cut off the chain of dumping Mobile World shares

Foreign investors cut off the chain of dumping Mobile World shares

Foreign investors disbursed nearly VND57 billion to buy MWG shares in the session of June 10, while selling less than VND40 billion, thereby cutting the 11-session selling streak.

Shares of Mobile World Investment Corporation (stock code: MWG) closed the trading session on June 10 at VND63,000, up nearly 1.5% compared to the reference and extending the increase for the second consecutive session. While the market price increased, MWG liquidity weakened for the third consecutive session, shown by the matched volume reaching only 4.8 million shares, far lower than the 6 million shares of the session at the end of last week. The transaction value also decreased from VND370 billion to VND304 billion.

However, one of the positive signals of MWG in the session of June 10 was that foreign investors returned to buy stocks after a long series of sell-offs. Specifically, foreign investors disbursed VND56.9 billion to buy 908,000 shares while only selling 620,000 shares, equivalent to about VND40 billion. The net purchase value accordingly reached VND18 billion.

Previously, foreign investors continuously sold Mobile World shares in the context of continuously increasing market prices. Net selling value fluctuated around 30-90 billion VND per session, but in one particular session, foreign investors sold nearly 140 billion VND, the highest level in the past 3 months. The continuous selling also pushed the remaining foreign ownership ratio from 0 shares in mid-May to 13.4 million shares as of now.

At the current price of VND63,000, Mobile World shares have increased by about 50% compared to VND42,000 at the beginning of the year. The company's market capitalization is currently at VND92,121 billion.  

However, according to some securities companies, MWG's price increase prospects are still relatively open thanks to its ability to complete revenue and profit targets.  

Specifically, in a report published 3 days ago, the analysis team of An Binh Securities Company said that the reasonable price of MWG is 68,200 VND. According to the team of experts, the driving force for MWG's price increase comes from the business results of Mobile World and Dien May Xanh, which will record positive growth compared to the low base level of the same period (but still not return to the old peak level as in the period 2019-2022). In addition, gross profit margin is expected to improve significantly thanks to the optimization of inventory management and the price war to compete for market share among retail businesses has ended.

In another report by KB Securities Vietnam, MWG's target price is VND69,000 and gives a buy recommendation.

“The ICT industry with the The Gioi Di Dong and Dien May Xanh chains after the price war ended has brought many positive signals. Revenue growth of both chains reached 7% compared to the same period last year, increasing faster than the whole industry despite closing stores. Bach Hoa Xanh continued to maintain revenue growth despite the context of flat purchasing power and no new store openings. We forecast that in 2024, MWG will have net revenue of VND 132,866 billion (+11.4%) and after-tax profit of VND 3,679 billion (+2.095%),” the analysis team of KB Vietnam Securities Company commented.

This year, Mobile World plans to have a revenue of VND125,000 billion, an increase of 6% over the same period, and an expected profit after tax of VND2,400 billion, an increase of 13.29 times compared to the actual performance in 2023. Mobile World's Board of Directors said earlier this year that the important orientation for 2024 is to comprehensively restructure in the direction of "reducing quantity, increasing quality" to strengthen internal strength, ready to break through for a period of sustainable growth.

In the first quarter, the company recorded revenue of VND31,486 billion, an increase of more than 16% over the same period, while after-tax profit increased 41.4 times to nearly VND903 billion.

Source: https://baodautu.vn/nha-dau-tu-ngoai-cat-chuoi-xa-hang-co-phieu-the-gioi-di-dong-d217337.html