DXG - Weak property handovers in Q3 but brokerage segment recovering - Earnings Flash
  • 2024-10-31T00:00:00
  • Company Research
  • DXG announced its Q3 2024 results with revenue of VND1.0tn (USD41mn; -17% YoY and -10% QoQ) and NPAT-MI of VND31bn (USD1.2mn; -55% YoY and -7% QoQ). We mainly attribute the YoY and QoQ declines in Q3 2024 to lower property development revenue, partially offset by an increase in brokerage revenue. DXG’s 9M revenue and NPAT-MI were VND3.2tn (USD128mn; +39% YoY) and VND95bn (USD.38mn; -27% YoY), respectively.
  • DXG’s presales were minimal in 9M 2024 as the Gem Sky World project (total of ~3,900 low-rise/land-plot units; ~60% presold and ~40% delivered at end-Q3 2024; in Dong Nai Province) has yet to relaunch because DXG is focusing on finalizing handovers and signings SPAs with existing customers while the Gem Riverside project (Thu Duc; HCMC) is expected to relaunch in 2025F. 
  • The earnings results are similar to the preliminary results announced at the DXG-DXS earnings call on October 22 (see our Analyst Meeting Note). For more detailed information on our forecasts, please refer to our our October 29 DXG Update Report).

 DXG’s 9M 2024 results

VND bn

Q3
 2023

Q3
 2024

YoY

9M
 2023

9M
 2024

YoY

2024F

9M as %
 of 2024F

Net revenue 

1,214

1,013

-17%

2,306

3,204

39%

4,161

77%

- Property development 

1,012

597

-41%

1,733

2,172

25%

2,756

79%

- Brokerage 

137

353

2.6x

396

829

2.1x

1,101

75%

- Others 

65

63

-3%

176

203

15%

304

67%

Gross profit 

594

505

-15%

1,050

1,516

44%

1,882

81%

SG&A expenses 

-264

-271

3%

-643

-775

20%

-1,012

77%

EBIT 

330

234

-29%

407

741

82%

870

85%

Financial income 

8

13

72%

368

26

-93%

32

81%

Financial expense 

-152

-105

-31%

-462

-337

-27%

-425

79%

Net income from affiliates 

-5

-6

N.M.

-11

-22

N.M.

-30

N.M.

Net other income 

2

-12

N.M.

34

14

-59%

40

35%

NPAT 

110

73

-33%

150

244

63%

317

77%

NPAT-MI 

68

31

-55%

129

95

-27%

127

75%

 

 

 

 

 

 

 

 

 

Gross margin 

48.9%

49.9%

 

45.5%

47.3%

 

45.2%

 

EBIT margin 

27.2%

23.1%

 

17.6%

23.1%

 

20.9%

 

NPAT-MI margin 

5.6%

3.0%

 

5.6%

3.0%

 

3.0%

 

Source: DXG, Vietcap forecast (last updated October 29, 2024)  

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