MWG is returning to a new growth cycle in 2025–2030 with three key drivers:
(1) Recovery of the ICT and electronics segments after restructuring, reducing the number of stores (-7%) while increasing revenue quality (+20%) compared to the beginning of the year. Revenue is expected to reach VND 100,600 billion (+12% YoY). MWG is preparing an IPO plan for the Era Blue chain in Indonesia after 2027. The chain’s business performance has improved significantly; after the pilot phase in 2023–2024, Era Blue has opened 124 stores, all of which are profitable.

(2) BHX is becoming the primary growth engine with an IPO planned in 2028, which will help re-rate MWG’s valuation. It has strong growth momentum driven by successful expansion in the Central region along with plans to expand to the North, and is expected to deliver around VND 500 billion in net profit this year (+40% YoY). However, MWG’s ambition to list BHX early can be realized still depends on BHX’s accumulated losses of more than VND 6,900 billion can return to positive retained earnings.

(3) Business efficiency improves thanks to the expansion of the online segment: leveraging the strong e-commerce infrastructure of TGDĐ/ĐMX, BHX also targets to increase the online revenue contribution from 5% to 10% within the next two years. The online channel helps reduce rental pressure, thereby supporting profit margins.

In addition, the AvaKid segment and An Khang Pharmacy have not shown significant breakthroughs yet; we will continue to update developments in upcoming reports.

VALUATION AND RECOMMENDATION

We apply the SOTP valuation method and determine the fair value for MWG at VND 80,496 per share, with a “Hold” recommendation. MWG is entering a favorable business cycle with BHX as its main growth driver. In the long term, the IPO plans of its subsidiary retail chains are key catalysts that may help re-rate the company’s valuation.