• We attended DXS’s annual general meeting (AGM) on May 9.
• Shareholders approved management’s 2024G guidance for revenue of VND2.4tn (USD95mn; +19% YoY) and NPAT-MI of VND168bn (USD6.7mn; vs 2023 net loss of VND168bn) — equivalent to 90% and 73% of our respective forecasts. DXS’s   2021/22/23 NPAT-MI was equivalent to 36%/28%/-133% of its respective guidance. We attribute the difference between management’s 2024G guidance and our forecast (2024F NPAT-MI of VND230bn), mainly to our projections on lower operating costs, including SG&A.
• Shareholders approved (1) no dividend distribution plan for FY2023 and (2) a FY2024 dividend plan of 10% on par value (par value of VND10,000/share). Shareholders authorized the BOD to pay cash dividends in advance based on business results, capped at 10% of charter capital. 
• Shareholders approved for DXG, the parent company, to acquire DXS’s outstanding shares without carrying out procedures for tender offers for a maximum total of 68 million shares (11.78% of DXS’s outstanding shares) from five institutional shareholders. After completing the transfer, the ownership ratio of DXG at DXS will be 70.78%. 

Management expects a strong pick up in 2024 brokerage activities. Management anticipates ramping up DXS’s full-service brokerage and targets around 16,000 units of brokerage transactions in 2024, with the focus being the real living demand segment (condos). In addition, management is confident that DXS can collect its receivables over the next 1-2 years (which are mainly from deposits for full-service brokerage) as sales for most developers are expected to pick up.

DXS aims to develop and complete its real estate services ecosystem. In addition to retaining and increasing market share in the primary brokerage segment, DXS’s management identified potential opportunities in relatively un-penetrated segments, including secondary brokerage (Ihouzz), commercial real estate brokerage (at Xanh Commercial), and real estate management (Asahi), and is proactively expanding DXS’s operations in these potential segments.  

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