DXS – Q2 earnings improve QoQ, similar to our expectations – Earnings Flash
  • 2024-07-30T00:00:00
  • Company Research
  • DXS released its Q2 2024 results with revenue of VND702bn (USD28mn; +32% QoQ and +6% YoY) and NPAT-MI of VND38bn (USD1.5mn; +22% QoQ vs Q2 2023’s net loss of VND19bn/USD0.7mn). DXS’s earnings results continue to improve QoQ as a result of the property market recovering, and are broadly in line with our expectations. The earnings results are similar to the preliminary results announced at the DXG-DXS earnings call on July 23 (see our note for details). 
  • H1 2024’s revenue increased 25% YoY to VND1.2tn (USD48mn) while NPAT-MI improved to VND69bn (USD2.7mn; vs a net loss of VND58bn/USD2.3mn in H1 2023). We anticipate no significant changes to our 2024F forecasts as we expect further improvement in property transactions in H2 2024F, pending a fuller review. 
  • Brokerage revenue increased 80% YoY to VND480bn (USD19mn) in H1 2024, completing 37% of our full-year forecast and is broadly in line with our expectation. In H1 2024, DXS recorded around 7,000 transactions (accounting for around 33% of market share) with the contributions from traditional and full-service brokerage services being around 70% and 30%, respectively. In addition, the segment’s GPM increased 14-ppts YoY to 64% in H1 2024.
  • The property sales segment’s revenue in H1 2024 was VND636bn (USD25mn; -9% YoY), representing 53% of our full-year forecast. DXS expects that it could ramp up sales of its self-developed projects by Q4 2024 when market conditions improve. 

 DXS’s H1 2024 results  

VND bn

Q2

2023

Q2

2024

YoY

H1

2023

H1

2024

YoY

2024F

H1 as % of 2024F

Net revenue

662

702

6%

991

1,237

25%

2,629

47%

- Brokerage

192

290

51%

266

480

80%

1,296

37%

- Property sales

433

344

-21%

697

636

-9%

1,207

53%

- Others

37

69

85%

28

121

4.3x

126

96%

Gross profit

151

291

93%

283

520

84%

1,265

41%

SG&A expenses

-132

-164

24%

-267

-295

11%

-762

39%

EBIT

19

127

6.8x

16

225

13x

502

45%

Financial income

11

5

-54%

20

9

-57%

38

23%

Financial expense

-37

-26

-29%

-74

-54

-26%

-144

38%

Net income from affiliates

-7

-16

N.M.

-9

-16

N.M.

0

N.M.

Net other income

8

4

-48%

1

3

3.5x

0

N.M.

PBT

-6

95

N.M.

-45

166

N.M.

397

42%

NPAT

-17

76

N.M.

-61

130

N.M.

317

41%

Minority interest

2

38

21x

-3

61

N.M.

127

48%

NPAT-MI

-19

38

N.M.

-58

69

N.M.

190

36%

 

 

 

 

 

 

 

 

 

GPM

22.8%

41.5%

 

28.5%

42.0%

 

48.1%

 

SG&A exp./sales

19.9%

23.4%

 

26.9%

23.9%

 

29.0%

 

EBIT margin

2.8%

18.1%

 

1.6%

18.2%

 

19.1%

 

NPAT margin

-2.6%

10.9%

 

-6.2%

10.5%

 

12.1%

 

MI as % of NPAT

N.M.

50.2%

 

5.6%

46.7%

 

40.0%

 

NPAT-MI margin

-2.9%

5.4%

 

-5.8%

5.6%

 

7.2%

 

Source: DXS, Vietcap forecast (last updated May 17, 2024)

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