DXG – Gem Sky World presales, handovers progress short of expectations – Earnings Flash
  • 2024-07-30T00:00:00
  • Company Research
  • DXG announced its Q2 2024 results with revenue of VND1.1tn (USD44mn; +58% YoY and +6% QoQ) and NPAT-MI of VND33bn (USD1.3mn; -79% YoY and +5% QoQ). The YoY earnings decline is mainly due to the lack of a large one-time financial gain as seen in Q2 2023. The earnings results are similar to the preliminary results announced at the DXG-DXS earnings call on July 23 (see our note for details).
  • The property development segment’s revenue surged 118% YoY to VND1.6tn (USD48mn) in H1 2024, which was mainly driven by handovers at the Opal Skyline (Binh Duong; over 90% of total units were handed over as of end-Q2 2024). Additionally, in H1 2024, there were minimal presales and handovers at the Gem Sky World project (GSW; 92 ha in Dong Nai; ~60% was presold and ~40% was handed over).
  • For more detailed information about DXG’s property brokerage segment, please refer to our July 30 DXS Earnings Flash.
  • DXG’s H1 2024 NPAT-MI was VND64bn (USD2.5mn; +5% YoY) and fulfills 28% of our full-year forecast. Pending a fuller review, we foresee potential downside risk to DXG’s 2024F NPAT-MI forecast (VND230bn/USD9.0mn; +34% YoY) as the presales and handovers progress at GSW and H1 2024 profits trailed our expectations.

DXG’s H1 2024 results  

VND bn

Q2

2023

Q2

2024

YoY

H1

2023

H1

2024

YoY

2024F

H1 as % of 2024F

Net revenue

714

1,126

58%

1,092

2,191

101%

5,582

39%

- Property development

454

754

66%

721

1,575

118%

4,146

38%

- Brokerage

214

287

34%

259

476

84%

1,101

43%

- Others

46

85

86%

112

140

25%

334

42%

Gross profit

290

539

86%

456

1,011

122%

2,307

44%

SG&A expenses

-208

-286

37%

-379

-504

33%

-955

53%

EBIT

82

253

3.1x

77

507

6.6x

738

69%

Financial income

342

4

-99%

361

13

-96%

48

27%

Financial expense

-160

-107

-33%

-310

-232

-25%

-525

44%

Net income from affiliates

-4

-16

N.M.

-6

-17

N.M.

0

N.M.

Net other income

-11

30

N.M.

31

26

-18%

0

N.M.

NPAT

157

94

-40%

40

171

4.3x

383

45%

NPAT-MI

156

33

-79%

61

64

5%

230

28%

 

 

 

 

 

 

 

 

 

Gross margin

40.6%

47.8%

 

41.8%

46.2%

 

41.3%

 

EBIT margin

11.5%

22.4%

 

7.1%

23.2%

 

13.2%

 

NPAT-MI margin

21.9%

2.9%

 

5.6%

2.9%

 

4.1%

 

Source: DXG, Vietcap forecast (last updated May 17, 2024)

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