Financial Performance

1. Profitability
As can be seen, ROE and ROCE of MWG have the same trend of fluctuation during the
last three years. Both ROE and ROCE felt significantly from 36% to -3 % and 24.5% to -
11 %, respectively. Moreover, both ratios show that they are below the median industry ;
therefore, it seem that the management of MWG.

There are four main competitors of MWG within retail industry which are FRT, PET,
DGW, all of these companies are listed on FTSE-100. MWG had return on equity ratio
(ROE) decreased gradually over last five years, from 31.59% in 2019 to 0.72% in 2023.
This indicates that the effectiveness of using invested money of company decreased
overtime. Meanwhile, FRT , this figure was higher than MWG’s , at 19,15% in 2023. The
figure shows that MWG ranked at the top in term of ROE and ROCE comparing to its
main competitors
Liquidity ratio

From 2022 to 2023 the company had curent ratio decreased overtime but maintained
around 1.2. This means that the company had current assets to cover its current liabilities
and the company’s current assets wwere allocated well. FPT Corporation, however, had
this ratio decrease and below MWG during period and reached 1.00 in 2023.

1. Solvency ratio
Debt to equity of MWG decreased overtime and was at 1.57 in 2023. During 2019 - 2021,
debt to equity witness an decrease from 2.43 to 2.09, meanwhile profit margin ratio
decreased from 3.71% to 0.14% . This indicates that during that period , the company use
more debt to finance its assets relative to the value of stockholders ‘equity, which might
occur more interest expenses. Meanwhile, FPT’s debt euity ratio was -1.03% in 2023.
Debt to equity ratio also illustrates that MWG’s debt to equity ratio stands at lower level
comparing to its peer median.
 Beta
4.1. Methodology
4.2. Data
In order to estimate the Beta, weekly historical data of MWG and FTSE - 100 are
collected for the period of 5 years from 2019 to 2023. 5 fiscal years of MWG end at 31th
December and FTSE - 100 (where MWG was listed ) is considered as market index, so
these variables were selected
4.3. Calculation
The linear regressions are obtained by using microsoft excel 2010

4.4. Discussion

As can be seen on the regression model above, MWG ‘s beta is lower than 1 indicating that stock is 22%
less volatile than the market . This implicates that it is likely to be less risky for investors when buying
shares of MWG. Low beta is justified along with debt to equity ratio because both indicators show that
the risk at investing in MWG to low. Moreover, it seems that companies within retailing sector are likely
less risky than other sectors because they all have downtrend in debt to equity ratio and the beta stand
at lower than 1.

BUSINESS MODEL

Thegioididong.com is a brand belonging to Mobile World Joint Stock Company, English name is
Mobile World JSC, (stock code: MWG) is a retail group in Vietnam with the main business field
being electricity retail. mobile phones, digital devices and consumer electronics. From the
second quarter of 2020 to the first quarter of 2022, Mobile World Joint Stock Company (stock
code MWG) emerged as a very effective "money trading" company. Despite short-term debt of
more than ten trillion dong, Mobile World simultaneously maintains cash and bank deposits of
between 10,000 - 15,000 billion. This company has cleverly used techniques on terms and
interest rate differentials to always achieve a state of financial revenue 100 - 150 billion VND
higher than financial costs, bringing a positive net profit. from financial activities.

After maintaining this status for 8 consecutive quarters, by the second quarter of 2022, Mobile
World's financial costs had skyrocketed, causing the company to shift to a loss from financial
activities.
According to the October 2023 business report, MWG's total revenue reached 11,190 billion
VND, an increase of 1% over the same period and 5% over the previous month. Despite a
modest increase, this is the first month of the year MWG achieved positive growth.

Of which, revenue from the ICT & CE segment (mobile phones and electronics) reached more
than VND 7,800 billion, up 8% over the previous month, but down 5% over the same period. The
reason driving October revenue mainly came from the heat of the iPhone 15. The Bach Hoa
Xanh chain achieved total revenue of more than 25,000 billion VND, up 13% over the same
period and contributed 26% to total revenue.

As the largest retailer in the field of electronics and mobile phones, Mobile World is negatively
affected by the decline in consumption, especially of non-essential products during the economic
downturn. Mobile World and Dien May Xanh have traded off revenue growth and gross profit
margin to create a super-cheap price war. Corporate profits have fallen from a peak of 2,000
billion/quarter to 130-200 billion/quarter. In 2023, net profit will only reach 168 billion VND - a
decrease of 95.9% compared to the previous year and the lowest level ever.

INDUSTRY GENERAL
The Retail industry is valid from Q3/2022
The Retail industry peaked in revenue and profit before trending downward from Q3/2022. The
decline in revenue in Q4/2022 has put existential pressure on retail businesses with material
prices tending to increase over the same period. The group selling specialized IT software has
received continuously valuable business results since Q1/2023, due to the trend of consumers
using limited spending regimes for non-essential items and competitive pressure on rising prices.
High. In general, the business results of the entire retail industry are still not feasible and tend to
support essential product groups. We evaluate specialized retail experiences through the
recession period and expect recovery from Q3/2023 due to positive signs from micro factors such
as: effectively controlled inflation, policy Reduce operating profit, reduce VAT, increase base
salary
(https://www.funan.com.vn/vi/bao-cao-phan-tich-ctcp-dau-tu-the-gioi-di-dong-mwg_14064)