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MWG [BUY +45.9%] - BachhoaXANH on track for success despite challenges - Update

Company Research

06 Feb 2018

We reiterate our BUY rating with a 46% total return. MWG’s three-year PEG is appealing at 0.7. We cut our TP by 5% mainly due to lower forecasts for BachhoaXANH (BHX/minimart) and FY18 SSSG of mobile and consumer electronics, partly offset by lower WACC and EPS rollover. We revise down our sales/store and GPM forecasts for BHX in 2018 following our channel checks and project a USD14 mn loss for this chain in 2018 vs USD2 million in net profit previously.
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