[ad_1]
Rising inflation may have a destructive influence on shopper spending, and the earnings development of retail companies is probably not as excessive as beforehand anticipated, SSI Securities Inc has forecast.
Within the info know-how and residential electronics (ICT and CE) segments, Digiworld (DGW) introduced a 20 per cent enhance in web revenue within the second quarter of this yr, a lot decrease than the 97 per cent enhance within the first quarter.
Cellular World Group (MWG) reported a 2 per cent enhance in income from the ICT and CE segments in Could, a lot decrease than the 20-22 per cent enhance from February to April.
Digiworld’s (DGW) revenue development peaked within the fourth quarter of 2021 because of unusually excessive laptop computer gross sales, however the fourth quarter revenue development is prone to be destructive. In 2023, DGW’s revenue should enhance as a result of extra contributions from newly signed contracts, similar to Whirlpool and Joyoung model house equipment distribution contracts. Income from present contracts might proceed to extend as Xiaomi cellphones proceed to penetrate the market and iPhone promoting costs proceed to extend yearly.
FPT Retail (FRT)’s revenue additionally peaked within the fourth quarter of 2021 because of unusually excessive laptop computer gross sales, however within the fourth quarter, revenue might lower. FRT’s revenue can nonetheless enhance in 2022, though little or no, because of elevated market share within the retail ICT business and pharmacy chain. Because of its expertise within the pharmaceutical retail enterprise, FRT’s Lengthy Chau pharmacy model will proceed to realize market share from retail drug shops.
Cellular World Group (MWG) will even see income rise because of rising market share in ICT and CE segments, though the expansion is comparatively low. MWG’s revenue development in 2023 depends upon the success of its retail chain Bach Hoa Xanh’s (BHX) restructuring within the second and third quarters of this yr. If the restructuring is profitable, future revenue development may meet up with pre-pandemic development at 30-40 per cent, as within the 2017-2019 interval.
In line with SSI Analysis, the income development within the second half of the yr for the ICT & CE section will likely be bigger than the expansion within the first six months. For corporations with a excessive share of laptop computer gross sales in complete income, similar to FPT Retail and Digiworld, income development is prone to be within the single digits within the second half of 2021 because of the chip scarcity drawback.
In 2023, SSI Analysis has forecast flat income for the ICT section and single-digit development for the CE section. Bigger corporations will acquire extra market share by way of sturdy bargaining energy with suppliers, permitting them to mitigate the influence of rising prices and thereby supply extra reductions to assist prospects within the context of inflationary strain.
Within the jewelry section, though the difficult inflationary atmosphere might negatively have an effect on the demand for gold jewelry within the final six months of 2022, the income development of jewelry corporations nonetheless advantages from the post-COVID-19 restoration.
In 2023, a large-scale financial slowdown will put strain on gold demand, however the influence and persistence of inflation in Viet Nam would be the decisive elements for the consumption of high-income folks on non-essential items similar to jewelry, in keeping with SSI Analysis. Due to this fact, demand in 2023 is unlikely to exceed pre-COVID-19 ranges.
Inflation and recession will negatively have an effect on spending on non-essential objects. Low-income individuals are affected first, whereas spending on non-essential objects by high-income folks stays secure. Nevertheless, if inflation and recession persist, the spending of high-income folks will even endure.
In line with SSI Analysis, Phu Nhuan Jewellery (PNJ) might obtain the best development in revenue in 2022’s third quarter. It made a loss within the third quarter of 2021 because it needed to shut many shops as a result of strict social distancing measures.
bizhub
[ad_2]
Source link