DXS – Strong improvement in brokerage segment in Q1, in line with our expectations – Earnings Flash
  • 2024-04-27T00:00:00
  • Company Research


  • DXS announced its Q1 2024 results with revenue of VND534bn (USD21mn; +62% YoY) and NPAT-MI of VND31bn (USD1.2mn; vs Q4 2023’s net loss of VND114bn/USD4.6mn and vs Q1 2023 net loss of VND39bn/USD1.6mn). As the recovery in the Q1 2024 brokerage segment of DXS is broadly in line with our expectations and we continue to expect further recovery in upcoming quarters, we foresee no significant change to our 2024F earnings forecast.
  • DXS’s brokerage segment revenue surged 156% YoY in Q1 2024 as property transactions recovered YoY. Per the company’s Q1 2024 earnings call, DXG/DXS brokered around 1,100 units in Q1 2024, accounting for ~35-40% of the total market share. Per DXS, the nationwide absorption rate (% of total accumulated launched units) was ~25-30% in Q1 2024, compared to ~25-30% in Q4 2023 and ~5-10% in Q1 2023.  The brokerage segment’s GPM improved to 65.7% in Q1 2024 from 57.1% in Q1 2023 and 59% in 2023.
  • DXS’s property sales segment increased 11% YoY to VND292bn (USD12mn) in Q1 2024, which we attribute mainly to the scheduled handovers at Dat Xanh Mien Trung’s (Regal Group) self-developed projects, among which is Regal Legend (21 ha; Quang Binharound 20% presold).

DXS’s Q1 2024 results  

VND bn 

Q1  

2023 

Q1  

2024 

YoY 

2024F 

Q1 2024 as % of 2024F 

Net revenue 

329

534

62%

2,629

20%

Brokerage  

74

190

156%

1,296

15%

Property sales 

264

292

11%

1,207

24%

Others 

-9

52

N.M.

126

42%

Gross profit 

132

228

73%

1,265

18%

SG&A expenses 

-135

-131

-3%

-762

17%

EBIT 

-2

98

N.M.

502

19%

Financial income 

9

3

-60%

52

7%

Financial expense 

-37

-29

-23%

-144

20%

Net income from affiliates 

-2

-1

N.M.

0

N.M.

Net other income 

-7

-1

N.M.

0

N.M.

PBT 

-40

72

N.M.

411

17%

NPAT 

-44

54

N.M.

329

16%

Minority interst

-5

22

N.M.

99

23%

NPAT-MI

-39

31

N.M.

230

14%

 

 

 

 

 

 

GPM 

40.2%

42.8%


48.1%


SG&A exp./sales 

40.9%

24.4%


29.0%


EBIT margin 

-0.8%

18.3%


19.1%


NPAT margin

-13.4%

10.0%


12.5%


MI as % of NPAT

11.8%

41.7%

 

30.0%

 

NPAT-MI margin

-11.8%

5.8%

 

8.8%

 

Source: DXS, Vietcap forecast (last updated March 8, 2024)

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