Foreign investors dump Mobile World as sales tumble

In six months ending in November, they net sold over 76 million shares in total through order-matching.

Foreign ownership in the company, once a favorite stock of many investment funds, has dropped from 49% to 45% over the period.

MWG has plunged 30% since mid-September to around VND39,750 ($1.64) as of now.

The company posted a revenue of VND30.3 trillion in the third quarter, down 5% year-on-year. Its post-tax profit plunged 96% to VND39 billion.

In the first nine months sales fell 16% year-on-year to VND86.86 trillion.

Mobile World said that demand for electronics has dropped around 25-30% year-on-year in the first nine months.

Consumers are still reluctant to spend big on food, consumer goods and medicine, it added.

Brokerage SSI Securities forecasts Mobile World’s profit to plunge 46% year-on-year to VND330 billion in the last quarter.

The company expects sales growth to be single-digits in 2024 due to “market saturation” and weak demand.

The fact that foreign investors are net selling, however, can be an opportunity for others, chairman Nguyen Duc Tai told investors at a meeting last month.

Any company has to go through tough times and this is when investors’ trust is tested, he said, adding that those who believe in Mobile World should take this opportunity to buy more.