Company Insight

Initiate coverage with BUY call and Target price of VND166,900

Mobile World Investment Corp., Vietnam largest multi-category retailer, is our most favorite stock to buy for 2022 and beyond despite concerns about ESOP policy. The pillars are 1) favorable post-pandemic new normal economy; and 2) its aggressive expansion plan. We initiate coverage Mobile World with a BUY rating and target price of VND166,900, resulting in a potential upside of +24.1% from the current price of VND134,500. Our TP is based on DCF valuation methodology as it is able to capture the earnings growth and cashflow despite several potential investments in new “seed” businesses. We expect earnings to continue to grow at a two-digit rate through 2022-25, driven by higher market share and sale per store.