The Story
Mobile World Investment JSC will expand its business to grocery retailing and international markets. To 2020, the company expects to successfully expand its chain in Laos, Cambodia and Myanmar, meanwhile, increase mobile market share from 30% to 40%. MWG will expand DienmayXANH chain to become the number one consumer eletronics retailer by the end of 2017. In the wake of dirty food situation, in September, 2015, Mr. Tai and his partners launched a new business model in areas not related to what he did before - grocery business with the store brand of Bach Hoa Xanh (Green Grocery).
Starting with a small, unpopular company, after 12 years, Mobile World (MWG)’s Chairman Nguyen Duc Tai gradually turn MWG to become "a giant" in the mobile, …show more content…
Clear evidence of this trend is the increasing coverage of online selling websites such as Alibaba.com, Amazon.com, and Lazada.com, along with the weakening of Walmart, Parkson or Lotte. Therefore, MWG adapts to this transformation by developing their online distribution channels, targeting to account for 10% total revenue. In the long run, MWG will develop a new website called VuiVui.com to support online retailing. With a wide coverage of existing traditional stores, MWG will have a competitive advantage of having faster, more convenient delivery service. Along with its top-rated customer services, MWG is expected to be a redoubtable candidate of online retailing in the …show more content…
The company's size can more than double from here thanks to the new grocery chain Bachhoa XANH and international expansion. Our DCF assumes revenue will grow 12% until 2030 and operating margin will stay constant at 5.4%. This results in an intrinc value price of 255,000 VND per share, an upside of 55% from this level. It should be noted that the pilot period of Bachhoa XANH has exceeded management's expectations and they will expand the concept as fast as they did with the Mobile World concept. Current valuation takes into account all the cash flow of the current 1,000 Mobile and Dienmay Xanh stores, and the company will double the stores with the Bachhoa XANH concept. Forward P/E of 10x earnings is quite conservative for the leading position and growth potential of MWG.
MWG clearly meets the most important criteria of the book Common Stocks Uncommon Profit. It's all yeses to these important questions:
- Does the company show “sufficient market potential” for long-term sales growth? – Look for firms with an upward “long-range sales
Mobile World Investment JSC will expand its business to grocery retailing and international markets. To 2020, the company expects to successfully expand its chain in Laos, Cambodia and Myanmar, meanwhile, increase mobile market share from 30% to 40%. MWG will expand DienmayXANH chain to become the number one consumer eletronics retailer by the end of 2017. In the wake of dirty food situation, in September, 2015, Mr. Tai and his partners launched a new business model in areas not related to what he did before - grocery business with the store brand of Bach Hoa Xanh (Green Grocery).
Starting with a small, unpopular company, after 12 years, Mobile World (MWG)’s Chairman Nguyen Duc Tai gradually turn MWG to become "a giant" in the mobile, …show more content…
Clear evidence of this trend is the increasing coverage of online selling websites such as Alibaba.com, Amazon.com, and Lazada.com, along with the weakening of Walmart, Parkson or Lotte. Therefore, MWG adapts to this transformation by developing their online distribution channels, targeting to account for 10% total revenue. In the long run, MWG will develop a new website called VuiVui.com to support online retailing. With a wide coverage of existing traditional stores, MWG will have a competitive advantage of having faster, more convenient delivery service. Along with its top-rated customer services, MWG is expected to be a redoubtable candidate of online retailing in the …show more content…
The company's size can more than double from here thanks to the new grocery chain Bachhoa XANH and international expansion. Our DCF assumes revenue will grow 12% until 2030 and operating margin will stay constant at 5.4%. This results in an intrinc value price of 255,000 VND per share, an upside of 55% from this level. It should be noted that the pilot period of Bachhoa XANH has exceeded management's expectations and they will expand the concept as fast as they did with the Mobile World concept. Current valuation takes into account all the cash flow of the current 1,000 Mobile and Dienmay Xanh stores, and the company will double the stores with the Bachhoa XANH concept. Forward P/E of 10x earnings is quite conservative for the leading position and growth potential of MWG.
MWG clearly meets the most important criteria of the book Common Stocks Uncommon Profit. It's all yeses to these important questions:
- Does the company show “sufficient market potential” for long-term sales growth? – Look for firms with an upward “long-range sales