I will be sitting here contributing to shareholders for at least 10 more years, with the goal of 25% profit growth each year.
Recently, Digiworld Digital World Joint Stock Company (DGW) had an online meeting with investors in early May. Accordingly, the company’s representative presented an overview of the company’s operations. in the first quarter of 2022.
Net revenue in the first quarter was VND 7,009 billion, up 40% over the same period in 2021. Net profit reached VND 211 billion, up 98% over the same period last year.
In which, the revenue structure accounted for the main proportion of telephone products with sales growth of 37%, reaching VND 3,880 billion; followed by laptops and tablets with a sales growth of 64%, reaching VND 2,252 billion.
The company’s profit margin in Q1 became more positive compared to 2021 when gross profit margin gradually returned to the balance of 6.5% – 6.6%, net profit margin improved to 3%.
On the balance sheet, an issue of concern to many investors is that the company’s short-term debt as of March 31 increased by more than VND 860 billion, bringing the ratio of bank loans to equity of the business. close to 100%.
Explaining the reason for the high increase in short-term debt, the company representative said that in the first quarter, the company increased short-term debt to import a large amount of goods, in order to cope with risks such as increased transportation costs. High and impacted by China’s Zero Covid policy, the source of goods may be scarce because the factory cannot operate at full capacity.
In fact, China’s Covid situation has made deliveries prolong, some ports or factories in China are locked down from time to time, leading businesses to actively increase inventories, balance spending Financing costs increase due to increased inventory days with shortfalls in sales.
Specifically: inventories increased by 21% from VND 2,909 billion at the end of 2021 to VND 3,534 billion at the end of the first quarter of 2022. The number of days of inventory holding increased to a record 44 days (the same period last year was 19 days).
Besides, although receivables from customers also increased by nearly 25%, equivalent to more than 400 billion dong, the growth of receivables was in line with revenue growth, so the number of days receivable remained stable. compared with the previous period, ranging from 23-25 days.
Regarding the development orientation in 2022, in order to achieve the strong commitment of the Board of Directors, maintain the growth rate of 25% per year for the next 10 years, the company will simultaneously grow both vertically and horizontally, by expanding new business brands (in the old category) and adding new categories.
Specifically, DGW said: In the second quarter, the company will start distributing household products of Whirlpool, Eufy, Joyoung brands including refrigerators, washing machines, clothes dryers,…
Mr. Viet is very confident about DGW’s 25% growth prospect – “I’m pretty sure“, because key products such as phones and laptops still have the potential for double-digit growth, in addition, the growth momentum also comes from new brands as well as new industries (household appliances). , drugs and medical devices).
In particular, the new Whirlpool brand received a lot of attention and questions from investors. Mr. Doan Hong Viet said that Whirlpool-branded products have been sold at major retailers such as The Gioi Di Dong, in addition, will launch an online store and will have sales this May.
When asked about the price range of Whirlpool products, Mr. Viet said, Whilrpool has a high average price, like Electrolux. Whirlpool is a brand that has been around for more than 100 years in the US, and will compete with technology.
Whirlpool Corporation is an American multinational home appliance manufacturer and marketer, headquartered in Benton Charter Township, Michigan, United States. The company has 2020 sales of 19.46 billion USD, 78,000 employees and more than 70 manufacturing and technology research centers worldwide.
Regarding the sale of Xiaomi’s TV products, Mr. Viet said that television is a relatively large industry, with a market of 40 trillion VND in Vietnam. From June, DGW will start distributing Xiaomi TV products.
When receiving a question about the competitive advantage of Xiaomi TVs and doubts about the high import tax on electronic products, which reduces competitiveness compared to brands with domestic factories, such as Samsung, Mr. Viet said
“Firstly, Xiaomi has a domestic factory, so we can introduce the TV. Xiaomi TVs will not be taxed like Samsung. Secondly, according to Xiaomi’s tradition, the product will be Good and Cheap. Xiaomi is the latest product running the Android operating system with a great price. At the official launch date, you’ll see this.”
In the future, Mr. Viet affirmed that DGW will have other brands in the TV industry besides Xiaomi, this is a natural part of DGW’s business strategy and will continue to do so.
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at Blogtuan.info – Source: cafebiz.vn – Read the original article here
