DIG – 2023 revenue meets forecast but NPAT-MI surpasses expectation due to profit from associates – Earnings Flash
  • 2024-01-31T00:00:00
  • Company Research
  • DIG announced Q4 2023 revenue of VND434bn (USD17.9mn; +11% YoY) that was mainly supported by the handovers at the Gateway Vung Tau, Cap Saint Jacques, Nam Vinh Yen, and Hau Giang projects. Meanwhile, Q4 2023 NPAT-MI was 15x YoY to VND66bn (USD7.1mn), mainly thanks to the profit from associates worth VND36bn (USD1.5mn; 11x YoY; and vs VND3bn/USD0.1mn in 9M 2023).
  • In 2023, DIG’s revenue decreased 46% YoY to VND1.03tn (USD42.3mn) – in line with our forecast while its NPAT-MI increased 20% YoY to VND173bn (USD7.1mn) – surpassing our forecast by 38% mainly due to profit from associates in Q4 2023.
  • At end-2023, DIG’s cash (including short term deposits) surged to VND2.5tn (USD103mn) vs VND403bn (USD17mn) at end-Q3 2023. This increase was primarily driven by a rise in other short-term payables (including customers’ bookings for property purchases which grew from VND170bn/USD7mn at end-Q3 2023 to VND2.25tn/USD93mn at end-Q4 2023). As such, DIG’s net debt to equity ratio at end-2023 was 7.6% vs 30.5% at end-Q3 2023 and 43.9% at end-2022.

DIG’s 2023 results

VND bn

Q4 2022

Q4 2023

YoY

2022

2023

YoY

2023F

2023 as % of 2023F

Net revenue

391

434

11%

1,897

1,028

-46%

1,044

98%

Gross profit

110

103

-6%

632

244

-61%

256

95%

SG&A expenses

78

65

-17%

276

196

-29%

207

95%

Operating profit

32

38

19%

356

48

-87%

49

98%

Financial income

22

19

-14%

87

229

163%

216

106%

Financial expenses

56

23

-58%

265

125

-53%

125

99%

Profit from associates

3

36

977%

6

39

571%

3

15.6x

Other gains/loss 

3

7

162%

15

26

79%

20

131%

Profit before tax

4

76

19x

199

217

9%

162

134%

Profit after tax

3

68

25x

191

165

-14%

129

128%

NPAT-MI

4

66

15x

144

173

20%

125

138%

 

 

 

 

 

 

 

 

 

Gross margin

28.1%

23.7%

 

33.3%

23.7%

 

24.5%

 

SG&A exp./Sales

20.0%

15.0%

 

14.5%

19.1%

 

19.8%

 

Operating margin

8.1%

8.7%

 

18.8%

4.6%

 

4.7%

 

NPAT-MI margin

1.1%

15.3%

 

7.6%

16.8%

 

12.0%

 

Source: DIG, Vietcap forecast (updated December 22, 2023)


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