Domestic retailers poised for stronger earnings as demand increases

Following a report released by An Binh Securities on July 5, Nguyen The Minh, head of Investment Banking at the company, noted that consumption was one of the key drivers of economic growth in the first half of the year, with increasingly clear signs of recovery.

"Total retail sales of goods and consumer service revenue rose nearly 13 per cent on-year in the first six months. Excluding price effects, growth reached 7.3 per cent, up from 6.1 per cent in the first five months, indicating a genuine recovery in household consumption," said Minh.

A representative of FPT Digital Retail JSC said the company's first-half business performance exceeded internal targets across both retail chains.

Along with this, the Long Chau drugstore chain continued to serve as the primary growth engine, contributing approximately 70 per cent of consolidated revenue, while FPT Shop maintained its recovery trend and improved operating efficiency.

Digiworld Corporation reported June revenue of approximately $131.6 million, up 52 per cent on-year and marking the company's highest monthly revenue since its establishment.

The company’s revenue reached approximately $646.0 million in the first six months, up 44 per cent and fulfilling 51 per cent of its 2026 full-year revenue target of $1.26 billion.

The strong performance was driven by nearly all core business segments.

Laptop and tablet sales increased 52 per cent thanks to improved selling prices and expanded market share. Office equipment revenue rose 51 per cent, supported by demand for IT infrastructure, AI, and data centre investments.

Home appliances recorded 50 per cent growth, benefiting from hot weather and demand stimulated by the 2026 FIFA World Cup.

The mobile phone segment rebounded strongly, with June revenue surging 113 per cent, primarily driven by newly launched Xiaomi models.

Mobile World Investment Corporation has yet to announce its first-half results. However, during the first five months of 2026, revenue reached $3.17 billion, up 29.3 per cent on-year and completing 43 per cent of its annual revenue target of $7.40 billion.

Dien May Xanh, the group's consumer electronics and home appliances chain, remained the largest revenue contributor, accounting for 46.3 per cent of total sales, followed by Bach Hoa Xanh, its grocery retail chain, with 29.2 per cent, The Gioi Di Dong, its mobile phone and consumer electronics chain, with 22.5 per cent, and other businesses with 2 per cent.

MB Securities (MBS) forecasts Mobile World's second-quarter net profit at $88.2 million, up 34 per cent, supported by the recovery of The Gioi Di Dong and Dien May Xanh, together with the continued expansion of Bach Hoa Xanh.

For Masan Group Corporation, SSI Research expects the company's growth outlook to be supported by two key growth drivers: retail and mining.

MBS projects Masan's second-quarter profit at $54 million, up 31 per cent, mainly thanks to higher tungsten prices, which improved margins in the mining segment, alongside double-digit growth in the consumer goods business.

For Vinamilk, second-quarter net profit is forecast at $102 million, up 3 per cent. Domestic revenue is expected to continue improving, driven by nutritional products, while exports remain strong despite persistently high logistics costs.

The solid first-half business performance has prompted many research institutions to raise earnings expectations for the retail sector for the full year.

Securities firms forecast continued earnings growth for many retailers in 2026.

According to MBS, Mobile World's net profit could reach $379.6 million, up 35 per cent; Masan's could total $218.8 million, up 33 per cent; Digiworld's is projected at $28.9 million, up 32 per cent; while Vinamilk's could reach $402.3 million, up 7 per cent.

Digiworld said that entering the third quarter of 2026, expanding cooperation with more major brands is expected to continue generating growth momentum, helping the company achieve its business targets for the year.

A representative of FPT Retail said, “The positive results achieved in the first six months provide an important foundation for our confidence in completing the full-year plan. We remain committed to pursuing growth while improving operational efficiency, focusing on three strategic pillars: expanding the healthcare ecosystem, optimising operations across the entire network, and accelerating the application of technology and data.”

VIX Research forecasts that in 2026, FPT Retail could generate revenue of more than $2.45 billion, up 20 per cent from 2025, while net profit could exceed $57.6 million, representing growth of 46 per cent.

For Phu Nhuan Jewelry, SSI has revised down its 2026 net profit forecast from $142.8 million to $133.3 million, lowering its projected earnings growth rate from 26 per cent to 18 per cent.

On the stock market, retail shares have generally undergone a correction over the past week. Phu Nhuan Jewelry has fallen more than 17 per cent, FPT Digital Retail has declined 4.67 per cent, Digiworld has slipped 1.62 per cent, and Mobile World has eased 1.5 per cent.

According to Mirae Asset, Digiworld, Phu Nhuan Jewelry, and particularly Masan Group are all trading at historically attractive valuations, with both their price-to-earnings (P/E) and price-to-book (P/B) ratios approaching or falling below the lower end of their multi-year trading ranges.

MWG stands out as an exception, with its P/E ratio remaining in the low range while its P/B ratio is still around the historical median.

Nevertheless, improving household income is viewed as the key foundation for continued growth in domestic consumer spending, thereby sustaining the retail sector's role as a major driver of economic growth in the forthcoming period.

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Same-store sales drive Dien May Xanh's first-half revenue Dien May Xanh Investment JSC (DMX) reported first-half consolidated revenue of $2.61 billion, up 31 per cent on-year, driven by strong air conditioning seasonal demand and broad-based same-store sales growth across its retail network.