IR Newsletter 3rd Quarter 2020

Maintaining the growth momentum from previous quarters, Digiworld continued to enjoy growth in the third quarter of 2020 with an impressive performance:
• 3Q20 revenue: reached VND 3,624 billion, increasing 39% YoY.
• 3Q20 Profit after Tax: reached VND 75 billion, advancing 44% YoY.

Details are as follows:
– Laptops & tablets
Revenue reached VND 1,280 billion, increasing 13% year on year – an early completion of the 2020 plan even the market share has been declined due to the impact of Covid-19, showing that DGW is gradually expanding market share in this segment.
– Mobile phones
Revenue reached VND 1,868 billion, up 84% YoY. This growth was driven by Xiaomi brand as the market share increased steadily over the quarters. In addition, Apple has made certain contribution to Digiworld’s mobile phone sales from 3Q20 onwards.
– Office equipment
This had been continued to be affected by Covid-19, the demand for new purchase or replacement of office equipment had been declined. Revenue recorded a slight year-on-year increase 2%, reached VND 414 billion.
– Consumer Goods: earned VND 62 billion in revenue. This equates a negative growth of 06% over the same period due to the COVID – 19 pandemic.
Accordingly, by the end of first 9 months of 2020, Digiworld’s revenue was VND8,518 billion, and profit after tax was VND 168 billion, a year-on-year increase of 42% and 50%, respectively, equivalent to trailling EPS of VND 5,080.
As a results, Digiworld has achieved 84% revenue goal and 83% profit goal for the year 2020 by the end of third quarter.
– Cash and cash equivalents: Quarter-end balance reached VND 212 billion, significantly higher than the amount of cash in the same period in 2018 and 2019, showing that DGW’s business has recorded breakthrough growth in this quarter. This is the result of good business performance and cost management improvement. This is also a positive point for DGW’s short-term liquidity.
– Operating ratios: In 3Q20, DGW recorded a breakthrough in working capital management. Specifically:
+ Receivable days: is currently only 22 days, gradually decreasing compared to the same period, significantly improved thanks to the efficiency of tightening up debt collection policy.
+ Inventory days: also recorded a decrease to 24 days. This proves that Digiworld always had high inventory turnover during 3Q20.
+ Payable days: reached 15 days, proves that DGW’s strength to suppliers has also improved steadily over the years. Strong business growth has made distributors such as Xiaomi, Apple, Dell, Asus, Acer, etc. more confident in DGW’s sales capacity, so the debt policy of these suppliers with DGW is also loosened year to year, improved DGW cash flow management.
– Profitability ratios: At the end of 3Q20, Digiworld recorded a positive profitability ratios.
+ Gross profit margin remained at a good rate of 6.4%, although there was a slight decrease due to the growth of good profit margin segment such as Laptop, which did not increase as strongly as 3Q19, or Consumer Goods was impacted by Covid-19.
+ Net profit margin was improved to 2.1%, which is the result of restructuring general & administration expenses and selling expenses.
Shareholders have benefits form good cost-effective management, strong growth and a more secure debt structure when ROA and ROE increased. Especially, ROE in 3Q20 reached a record at 7.2% over quarters.
– Capital structure: In the last 3 years, 3Q20 had the safest debt/equity rate (at 0.45) thanks to efficient business, that helped DGW to have higher retained earnings added to equity.
– Laptops & Tablets is expected to continue growing in the 4th quarter of 2020 with contributions from Huawei and Apple brands.
– Mobile phones is expected to see strong growth thanks to Iphone 12 sale opening event in November – December.
– Office Equipment: With the trend of digital transformation and the control of the covid-19 pandemic, revenue from this segment will be on the process of recovery and development.
– Consumer goods: In 4Q20, DGW will distribute health care products from Italy and Canada.

Xiaomi Mi 10T Pro 5G

– Highest refresh rate screen with 144Hz.
– High-speed gaming with Snapdragon 865 5G chip.
– 108MP ultra-clear flagship camera
– 5000mAh high-capacity battery, 33W wired fast charge
Listed Price: VND 12,990,000 
Huawei Matebook D15
– The LCD cover, top cover, bottom cover and side covers (where the ports are located) are made of metallic materials.
– 15.6 inches of beautiful IPS FullView display, 87% of Screen-to-body Ratio
– Powered by the AMD Ryzen™ 7 4700U processor
– Power on and login securely with built-in fingerprint
Listed Price: VND 15,990,000
Huawei Matebook 13
– Meticulously crafted with a diamond cut finish on each corner
– 13-inch 2K FullView Display, 100% sRGB (typical) colour gamut
– High-precision multi-touch screen, fine-tuned for sensitivity and responds with complete accuracy
– 10-point multi-touch sensitive screen with finger gesture screenshot
Listed Price: VND 29,990,000
With robust growth in mobile phone segment, Digiworld revenue reached a new record in 3Q20.
Digiworld is awarded 2 prizes for Listed Companies with the best IR activities the 3rd time

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