DIG reported weak Q3 2022 results with net revenue of VND424bn (USD17mn; -21% YoY), of which revenue from the project development segment declined 38% YoY and contributed only 52% to total net revenue (vs a ~65% contribution in previous quarters) with continuing handovers at the Gateway Vung Tau, Cap Saint Jaques Complex, Nam Vinh Yen and Hiep Phuoc projects. In addition, the gross margin of the project development segment declined to 39% in Q3 2022 (-20 ppts QoQ & -9 ppts YoY), which was the main reason that dragged DIG’s Q3 2022 operating profit to VND46bn (USD1.9mn; -41%YoY). Meanwhile, DIG’s financial expenses surged to VND45bn (USD1.83mn; +155% YoY), which we attribute to the interest expense burden mainly from VND3.5tn (USD143mn) of bonds issued in September and November 2021 (accounting for 64% of total debt as of end-Q3 2022; maturing in 2024). As a result, Q3 2022 incurred a net loss of VND996mn (USD40,700) vs Q3 2021 NPAT-MI of VND43bn (USD1.77mn). As of end-Q3 2022, DIG’s net debt/equity was 43.1% vs 15.2% at end-2021 as there was a 45% YTD decrease of cash and cash equivalents — including short term investments.