DXS - Brokerage transactions continue improving in Q3 - Earnings Flash
  • 2024-10-31T00:00:00
  • Company Research
  • DXS released its Q3 2024 results with revenue of VND582bn (USD23mn; -17% QoQ and +14% YoY) and NPAT-MI of VND35bn (USD1.4mn; -8% QoQ and +10.2x YoY). The QoQ decline in earnings was mainly due to 56% lower QoQ property sales revenue, which was partly offset by a 25% QoQ increase in brokerage revenue.
  • In 9M 2024, the brokerage segment’s revenue doubled YoY to VND843bn (USD80mn; accounting for 46% of net revenue) as property transactions are recovering. Additionally, the property sales segment’s revenue declined 22% YoY in 9M 2024 to VND786bn (USD31mn; accounting for 43% of net revenue), which we attribute to lower backlog as its presales were relatively minimal in 2023-24.  DXS’s NPAT-MI increased to VND104bn (USD4.2mn) in 9M 2024, vs a loss of VND54bn/USD2.2mn in 9M 2023. 
  • 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 DXS Update Report). 

DXS’s 9M 2024 results

VND bn

Q3
 2023

Q3
 2024

YoY

9M
 2023

9M
 2024

YoY

2024F

9M as %
 of 2024F

Net revenue 

510

582

14%

1,501

1,818

21%

2,593

70%

- Brokerage 

154

363

2.4x

421

843

2.0x

1,296

65%

- Property sales 

312

150

-52%

1,009

786

-22%

1,026

77%

- Others 

43

68

57%

71

189

2.7x

272

70%

Gross profit 

224

268

19%

507

787

55%

1,143

69%

SG&A expenses 

-148

-167

13%

-414

-462

12%

-700

66%

EBIT 

76

101

32%

93

325

3.5x

443

74%

Financial income 

5

7

33%

25

16

-38%

24

66%

Financial expense 

-33

-22

-34%

-106

-76

-29%

-110

69%

Net income from affiliates 

-8

-6

N.M.

-16

-22

N.M.

-21

N.M.

Net other income 

3

-7

N.M.

4

-3

N.M.

7

N.M.

PBT 

45

74

66%

-1

240

N.M.

342

70%

NPAT 

25

53

2.1x

-36

183

N.M.

274

67%

Minority interest 

22

18

-18%

19

79

4.2x

127

62%

NPAT-MI 

3

35

10.2x

-54

104

N.M.

147

71%

 

 

 

 

 

 

 

 

 

GPM 

44.0%

46.0%

 

33.8%

43.3%

 

44.1%

 

SG&A exp./sales 

29.0%

28.7%

 

27.6%

25.4%

 

27.0%

 

EBIT margin 

15.0%

17.3%

 

6.2%

17.9%

 

17.1%

 

NPAT margin 

5.0%

9.1%

 

N.M.

10.1%

 

10.6%

 

MI as % of NPAT 

86.5%

33.9%

 

N.M.

43.0%

 

46.5%

 

NPAT-MI margin 

0.7%

6.0%

 

N.M.

5.7%

 

5.7%

 

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

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