- DXG announced Q2 2023 results with revenue of VND714bn (USD30mn; -54% YoY) and NPAT-MI of VND156bn (USD23mn; +17% YoY) vs a net loss of VND95bn (USD4mn) in Q1 2023. The top-line YoY decline was mainly driven by 43% and 68% lower revenue from the property development segment and brokerage segment, respectively. Meanwhile, DXG made a profit in Q2 2023 mainly thanks to financial income of VND342bn (USD14mn) that mostly came from a gain from the sale of undisclosed land plot, according to the company. 

- In H1 2023, DXG’s revenue declined 67% YoY to VND1.1tn (USD46mn) while its NPAT-MI plunged 85% YoY to VND61bn (USD2.6mn), representing 15% and 23% of our respective full-year forecasts. Pending a fuller review, do not anticipate any significant change to our 2023F forecast as we expect the majority of DXG’s H2 2023 revenue will come from deliveries at the Opal Skyline project and increasing brokerage revenue thanks to easing mortgage rates.

- The property development segment’s revenue decreased 59% YoY to VND721bn (USD31mn) in H1 2023, which we attribute to a minimal number of deliveries at the Gem Sky World (GSW) project. We expect sales and handovers at GSW to pick up in H2 2023 once the project’s amenities are completed and DXG can hand over pink books (certificate of house ownership and residential land use rights) to customers. 

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