A corner of PC products at an FPT Shop. FPT Retail (FRT)'s profit also peaked in the fourth quarter of 2021 thanks to unusually high laptop sales, but in the fourth quarter, profit may decrease. ( Photo courtesy of FPT Shop) In the information technology and home electronics (ICT and CE) segments,Digiworld (DGW) announced a 20% increase in net profit in the second quarter ofthis year, much lower than the 97% increase in the first quarter.
Mobile World Group (MWG) reported a 2% increase in revenue from the ICT and CEsegments in May, much lower than the 20-22% increase from February to April.
Digiworld's profit growth peaked in the fourth quarter of 2021 thanks tounusually high laptop sales, but the fourth quarter profit growth is likely tobe negative. In 2023, DGW's profit may still increase due to more contributionsfrom newly signed contracts, such as Whirlpool and Joyoung brand home appliancedistribution contracts. Revenue from existing contracts may continue toincrease as Xiaomi mobile phones continue to penetrate the market and iPhoneselling prices continue to increase every year.
FPT Retail (FRT)'s profit also peaked in the fourth quarter of 2021 thanks tounusually high laptop sales, but in the fourth quarter, profit may decrease.FRT’s profit can still increase in 2022, although very little, thanks toincreased market share in the retail ICT industry and pharmacy chain. Thanks toits experience in the pharmaceutical retail business, FRT’s Long Chau pharmacybrand will continue to gain market share from retail drug stores.
Mobile World Group (MWG) will also see profits rise thanks to increasing marketshare in ICT and CE segments, although the growth is relatively low. MWG'sprofit growth in 2023 depends on the success of its retail chain Bach HoaXanh's (BHX) restructuring in the second and third quarters of this year. Ifthe restructuring is successful, future profit growth could catch up withpre-pandemic growth at 30-40%, as in the 2017-2019 period.
According to SSI Research, the revenue growth in the second half of the yearfor the ICT & CE segment will be larger than the growth in the first sixmonths. For companies with a high share of laptop sales in total revenue, suchas FPT Retail and Digiworld, revenue growth is likely to be in the singledigits in the second half of 2021 due to the chip shortage problem.
In 2023, SSI Research has forecast flat revenue for the ICT segment andsingle-digit growth for the CE segment. Larger companies will gain more marketshare through strong bargaining power with suppliers, allowing them to mitigatethe impact of rising costs and thereby offer more discounts to supportcustomers in the context of inflationary pressure.
In the jewellery segment, although the challenging inflationary environment maynegatively affect the demand for gold jewellery in the last six months of 2022,the revenue growth of jewellery companies still benefits from the post-COVID-19recovery.
In 2023, a large-scale economic slowdown will put pressure on gold demand, butthe impact and persistence of inflation in Việt Nam will be the decisivefactors for the consumption of high-income people on non-essential goods suchas jewellery, according to SSI Research. Therefore, demand in 2023 is unlikelyto exceed pre-COVID-19 levels.
Inflation and recession will negatively affect spending on non-essential items.Low-income people are affected first, while spending on non-essential items byhigh-income people remains stable. However, if inflation and recession persist,the spending of high-income people will also suffer.
According to SSI Research, Phu Nhuan Jewelry (PNJ) may achieve the highestgrowth in profit in 2022’s third quarter. It made a loss in the third quarterof 2021 as it had to close many stores due to strict social distancingmeasures./.
Mobile World Group (MWG) reported a 2% increase in revenue from the ICT and CEsegments in May, much lower than the 20-22% increase from February to April.
Digiworld's profit growth peaked in the fourth quarter of 2021 thanks tounusually high laptop sales, but the fourth quarter profit growth is likely tobe negative. In 2023, DGW's profit may still increase due to more contributionsfrom newly signed contracts, such as Whirlpool and Joyoung brand home appliancedistribution contracts. Revenue from existing contracts may continue toincrease as Xiaomi mobile phones continue to penetrate the market and iPhoneselling prices continue to increase every year.
FPT Retail (FRT)'s profit also peaked in the fourth quarter of 2021 thanks tounusually high laptop sales, but in the fourth quarter, profit may decrease.FRT’s profit can still increase in 2022, although very little, thanks toincreased market share in the retail ICT industry and pharmacy chain. Thanks toits experience in the pharmaceutical retail business, FRT’s Long Chau pharmacybrand will continue to gain market share from retail drug stores.
Mobile World Group (MWG) will also see profits rise thanks to increasing marketshare in ICT and CE segments, although the growth is relatively low. MWG'sprofit growth in 2023 depends on the success of its retail chain Bach HoaXanh's (BHX) restructuring in the second and third quarters of this year. Ifthe restructuring is successful, future profit growth could catch up withpre-pandemic growth at 30-40%, as in the 2017-2019 period.
According to SSI Research, the revenue growth in the second half of the yearfor the ICT & CE segment will be larger than the growth in the first sixmonths. For companies with a high share of laptop sales in total revenue, suchas FPT Retail and Digiworld, revenue growth is likely to be in the singledigits in the second half of 2021 due to the chip shortage problem.
In 2023, SSI Research has forecast flat revenue for the ICT segment andsingle-digit growth for the CE segment. Larger companies will gain more marketshare through strong bargaining power with suppliers, allowing them to mitigatethe impact of rising costs and thereby offer more discounts to supportcustomers in the context of inflationary pressure.
In the jewellery segment, although the challenging inflationary environment maynegatively affect the demand for gold jewellery in the last six months of 2022,the revenue growth of jewellery companies still benefits from the post-COVID-19recovery.
In 2023, a large-scale economic slowdown will put pressure on gold demand, butthe impact and persistence of inflation in Việt Nam will be the decisivefactors for the consumption of high-income people on non-essential goods suchas jewellery, according to SSI Research. Therefore, demand in 2023 is unlikelyto exceed pre-COVID-19 levels.
Inflation and recession will negatively affect spending on non-essential items.Low-income people are affected first, while spending on non-essential items byhigh-income people remains stable. However, if inflation and recession persist,the spending of high-income people will also suffer.
According to SSI Research, Phu Nhuan Jewelry (PNJ) may achieve the highestgrowth in profit in 2022’s third quarter. It made a loss in the third quarterof 2021 as it had to close many stores due to strict social distancingmeasures./.
VNA
