DXG reported Q3 2022 results with net revenue of VND1.3tn (USD51mn; -4% YoY) mainly driven by the brokerage services business improving YoY from Q3 2021’s low base (see our DXS Earnings Flash, dated October 28, 2022) and deliveries at Gem Sky World (GSW). Meanwhile, DXG’s NPAT-MI surged 195% YoY to VND153bn (USD6mn) in Q3 2022 as the company recorded a pretax divestment gain of VND190bn (USD7.8mn) from selling a land plot in the quarter. 

For 9M 2022, DXG’s net revenue and NPAT-MI were VND4.6tn (USD188mn; -41% YoY) and VND556bn (USD23mn; -37% YoY), respectively. We note there was VND363bn (USD14.8mn) recorded from the divestment of small land plots in 9M 2022, which was significantly higher than our expectation and accounted for 31% of 9M 2022 PBT. Management stated that selling small land plots was to focus on scalable project developments in the medium term.