Digiworld’s General Meeting of Shareholders: Unaffected by COVID-19, estimated profit in 6 months is 91 billion dong
“Normally, business results in the first 6 months will contribute 42% -43% of the whole year revenue, so with the results that the company achieved in the first half of this year (48% of target revenue), I am fully confident in Digiworld’s ability to accomplish annual goals. “
Annual General Meeting of Shareholders of Digiworld Joint Stock Company (Digiworld – Ticker: DGW) in the afternoon of June 29. (Photo: Hoa My)
This is a sharing of Mr. Doan Hong Viet, Chairman of the Digital World Joint Stock Company (Digiworld – Code: DGW) at the Annual General Meeting of Shareholders in 2020 taking place this afternoon (June 29).
In 2020, Digiworld targets revenue of VND 10,200 billion and profit after tax of VND 202 billion, growing by 20% and 25% respectively compared to the results in 2019.
According to Digiworld’s Chairman, this goal is not too ambitious when only in the first quarter of 2020, the company has reached 2,311 billion dong in revenue and 45 billion dong in profit after tax, up 68% and 83% over the same period last year. 2019.
In the first 6 months, Digiworld estimated revenue of over VND 4,850 billion and profit after tax of VND 91 billion, equivalent to fulfilling 45% of the yearly profit plan.
On June 24, Digiworld officially became the authorized distributor of all Apple products in Vietnam, and it is expected that in the second half of the year, Digiworld will distribute about 50,000 Apple products.
Besides, according to Mr. Viet’s share, Digiworld will continue to cooperate with Xiaomi to distribute new brands including televisions and home appliances, in addition to mobile phones.
This year, the General Meeting of Shareholders approved the proposal to issue 1.2 million shares under the Employee Choice Program (ESOP) with an expected price of 10,000 dong / share and limit the transfer of 50% of the number of shares for one year.
Shareholders: In the revenue and profit plan that Digiworld has announced, how does signing with Apple contribute?
Mr. Doan Hong Viet, Chairman of the Board of Directors: This year’s plan does not include revenue and profit from Apple, however, the company expects this cooperation will contribute significantly to Digiworld’s business results in the near future.
Shareholders: Can the company share its business growth in the second quarter of 2020? Feasibility of the plan in 2020?
Mr. Doan Hong Viet: It is expected that in the second quarter of 2020, the company’s profit will grow by 25% over the same period, accumulated in the first 6 months of the year will grow by 48%. Revenues mainly come from laptops, phones, office equipment , Details of business results will be announced in the next month.
Normally, the business results of the first 6 months will contribute 42% -43% of the whole year revenue. Therefore, with the results that the company has achieved in the first half of this year (48% of target revenue), I am completely confident about the ability of Digiworld to achieve the annual target.
Shareholders: What is the strength of Digiworld compared to the recent proliferation of portable products?
Mr. Doan Hong Viet: In addition to genuine products that always provide quality products and good warranty, Digiworld is trying to lower the price to “soft” than portable products by expanding the delivery network.
Shareholders: Digiworld’s distribution network?
Mr. Doan Hong Viet: The company currently has three main warehouses in Hanoi, Da Nang and Ho Chi Minh City and from these warehouses distribute across 63 provinces.
Shareholders: Does the company plan to open Apple store in Vietnam?
Mr. Doan Hong Viet: Not at the moment, but this is very likely in the future.
Shareholders: Forecasting laptop growth in the third quarter of 2020?
Mr. Doan Hong Viet: Normally, third quarter revenue will grow strongly because this is the “Back to school” season.
However, this year the company expects third-quarter revenue will not increase too much because customers have stepped up consumption of computers and phones in the first quarter when there is a tendency to work from home during the epidemic season.
Shareholders: How does the disease affect DGW?
Ms. Dang Kien Phuong, Member of the Board of Directors: Translation of COVID-19 does not affect the import of Digiworld products in the past time because the company has carefully prepared it.
Besides, the company also receives support and sympathy from suppliers and banks so Digiworld’s cash flow is not affected too much.
Shareholders: Why open a new career?
Mr. Doan Hong Viet: The expansion of new industries (market research and public opinion survey) will provide DGW with a legal basis to provide services.
Shareholders: What are the advantages of the company compared to the competitors?
Mr. Doan Hong Viet: DGW is one of the few companies that can provide full services for brands, which also helps the company to have higher profit margins.
Shareholders: Does the company intend to distribute Vietnamese products or produce a specific product?
Mr. Doan Hong Viet: Digiworld is very willing to cooperate with domestic businesses to support the policy of Vietnamese people to use Vietnamese goods of the government and will cooperate if given the opportunity.
Currently, the company is growing horizontally, meaning looking for more products for distribution channels. However, in the coming time, Digiworld still wants to develop vertical business, produce and distribute its own products.
According to Digiworrld’s management, 2019 was a successful year when the company achieved VND 8,488 billion in net revenue, up 43% over the previous year, exceeding 19% of the plan; Profit after tax reached VND 163 billion, up 48%, exceeding 19% of the set target.
With the achieved business results, the company will pay a dividend of 2019 at the rate of 10% in cash, equivalent to VND 1,000 / share.
Digiworld’s profit growth in 2014-2020. (Source: Hoa My compiled from DGW’s FS).
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