- 2024-01-31T00:00:00
- Company Research
- DXS announced Q4 2023 results with revenue of VND477bn (USD20mn; -46% YoY) and a net loss of VND114bn (USD4.7mn; vs Q4 2022’s net loss of VND74bn/USD3.1mn and vs Q3 2023 NPAT-MI of VND3bn/USD0.1mn).
- In 2023, DXS’s revenue declined 52% YoY to VND2.0bn (USD81mn) while its bottom line was a loss of VND168bn (USD6.9mn) vs 2022 NPAT-MI of VND345bn (USD14mn). As 2023 revenue and profit result trailed our expectations, we anticipate downside risk to our 2024F earnings forecast, pending a fuller review.
- DXS’s brokerage segment revenue plummeted 72% YoY to VND648bn (USD27mn) in 2023 as there were a minimal number of new project launches and transactions in the year. Per DXS, the nationwide absorption rate (% of total accumulated launched units) was ~20-28% in 2023, with Q4 2023 showing QoQ improvement in the north of Vietnam and the west but slightly decreasing in the southern and central areas.
- The brokerage segment’s GPM in 2023 was 59%, down 7.6 ppts compared to 2022, which we attribute to a higher contribution from traditional brokerage, which has lower margins compared to full-service brokerage.
- DXS’s net income from affiliates was negative VND107bn (USD4.4mn) in 2023, which was mainly from DXS’s 49%-owned Dat Xanh Mien Nam (DXMN) affiliate. Per DXS, a contributing factor to this loss is the provision made by DXMN for its receivables from the developer LDG Investment JSC (HOSE: LDG), due to LDG currently encountering legal issues.
DXS’s 2023 results
VND bn | Q4 2022 | Q4 2023 | YoY | 2022 | 2023 | YoY | 2023F | 2023 as % of 2023F |
Net revenue | 884 | 477 | -46% | 4,096 | 1,978 | -52% | 2,402 | 82% |
| 311 | 227 | -27% | 2,349 | 648 | -72% | 705 | 92% |
| 393 | 198 | -50% | 1,498 | 1,207 | -19% | 1,498 | 81% |
| 180 | 52 | -71% | 249 | 123 | -50% | 199 | 62% |
Gross profit | 360 | 184 | -49% | 2,329 | 691 | -70% | 866 | 80% |
SG&A expenses | -459 | -171 | -63% | -1,600 | -585 | -63% | -721 | 81% |
EBIT | -100 | 14 | N.M. | 729 | 106 | -85% | 145 | 73% |
Financial income | 17 | 22 | 28% | 55 | 48 | -13% | 49 | 97% |
Financial expense | -62 | -28 | -55% | -148 | -134 | -9% | -190 | 71% |
Net income from affiliates | 0 | -91 | N.M. | 0 | -107 | N.M. | 0 | N.M. |
Net other income | 7 | 4 | -45% | 25 | 8 | -70% | 0 | N.M. |
PBT | -137 | -79 | N.M. | 661 | -80 | N.M. | 5 | N.M. |
NPAT | -142 | -125 | N.M. | 530 | -160 | N.M. | 4 | N.M. |
NPAT-MI | -74 | -114 | N.M. | 345 | -168 | N.M. | 3 | N.M. |
|
|
|
|
|
|
|
|
|
GPM | 40.7% | 38.6% |
| 56.9% | 34.9% |
| 36.1% |
|
SG&A exp./sales | 51.9% | 35.7% |
| 39.1% | 29.6% |
| 30.0% |
|
EBIT margin | N.M. | 2.9% |
| 17.8% | 5.4% |
| 6.1% |
|
NPAT-MI margin | N.M. | N.M. |
| 8.4% | N.M. |
| 0.1% |
|
Source: DXS, Vietcap forecast (last updated October 16, 2023)
Powered by Froala Editor