Digiworld (HOSE: DGW) | Initiation Report, ADD - FW2026 Upside +12.2%

Company Information

Digiworld Corporation (DGW) was established in 1997 and has evolved from a traditional IT distributor into a leading distributor of technology and consumer products in Vietnam. The company currently partners with over 45 global brands, including Xiaomi, Apple, Asus, and Acer operates a nationwide distribution network of more than 8,000 points of sale.

Financial Performance

In 2025, revenue reached VND 26,632 bn (+20.6% YoY), of which home appliances recorded the fastest growth at 75.3% YoY to VND 1,741 bn, supported by the launch of large Xiaomi appliances and the addition of new brands such as Philips, Cuckoo, and Funiki. GPM declined to 8.68% from 9.31% in 2024 due to exchange rate impacts, while SG&A expenses decreased from 6.93% to 5.98% of revenue, mainly driven by lower salary and marketing expenses. As a result, NPAT-MI increased to VND 548 bn (+23.4% YoY), with NPM improving to 2.06%, thanks to higher-margin from the office equipment and home appliances.

As of end-2025, DGW’s total assets reached VND 11,259 bn (+32.5% YoY). Total liabilities rose 41.9% YoY to VND 7,787 bn, mainly driven by a 53.0% YoY increase in short-term payables to VND 3,524 bn as the company increased laptop inventory ahead of expected price increases.

Investment Rationales

We favor DGW for its ability to successfully expand into new product categories and continuously achieve sustained revenue and earnings growth over the long term:

o   Leading distributor with strong brand partnerships and differentiated MES model.

o   Office equipment and home appliances emerging as key growth drivers.

o   Expansion into new categories supports long-term growth

Valuation and Recommendation

We apply a combination of DCF and P/E valuation methodologies at 40%/60% to derive a FW2026 target price of VND 50,100/share for DGW. This implies a 12.2% price upside from the closing price of VND 44,650/share as of April 15, 2026. Accordingly, we initiate coverage on DGW with a ADD recommendation at this current market price.