MobileWorld announces share HSX share issue

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This follows shareholder approval of its listing plans on February 10. As of 2013, the company operated 213 mobile shops located in every province throughout the country and another 12 electronics shops under the name Electronic World in the south.

Last year the group announced sales of VND9.5 trillion ($452.38 million), up 28 per cent on-year and pre-tax profits of VND351 billion ($16.7 million), up 108.2 per cent on-year.

Profit growth saw such high percentage growth thanks to 25 per cent revenue growth from shops as the group closed underperforming stores, 822 per cent increases from the group’s rebates following early payments to manufacturers, and a 52 per cent decline in financial expenses thanks to lower interest rates. The mobile segment in general enjoyed a good year with 17.3 per cent in sales while the electronics segment saw a drop of 22.2 per cent.

MobileWorld’s strategy is to expand its electronics chains with the goal of seeing growth equal to that of the mobile industry and thereby taking the lead as the number one mobile and electronics retailer. Their strategy is price competitiveness with superior service.

Up to now the company’s electronics stores total 13 with 4 in Ho Chi Minh City and another 9 in southern provinces with average store revenue of VND9.7 billion per month.

This year the company plans to open several new stores in the south, but has no plans for the north due to a perceived low demand in the market. It also announced it has plans to move into consumer segments beyond just IT and electronic appliances.

In response to the share issue announcement, Ho Chi Minh City Securities Company reported in its newsletter that it believed MobileWorld would continue to see strong earnings thanks to growing consumer demand.

It added that the firm would see sales of VND13.7 trillion ($652.38 million) this year, up 44 per cent against 2013 with after-tax net profits of VND366 billion ($17.4 million), up 42 per cent. They estimated earnings per share of VND5,384.