DXG - Handovers of presold units at Gem Sky World fuel Q4 earnings growth, exceeding forecasts - Earnings Flash
  • 2025-02-03T00:00:00
  • Company Research
  • DXG announced its Q4 2024 results with revenue of VND1.5tn (USD60mn; +8% YoY and +51% QoQ) and NPAT-MI of VND158bn (USD6.2mn; +3.7x YoY and +5.1x QoQ), mainly due to the handovers of ~150 units at Gem Sky World (GSW).
  • 2024 revenue and NPAT-MI were VND4.7tn (USD186mn; +27% YoY) and VND253bn (USD9.9mn; +47% YoY), completing 114% and 199% of our respective full-year forecasts. We attribute DXG’s higher-than-expected NPAT-MI to a higher-than-expected revenue contribution and handovers from presold units at GSW.
  • We foresee no significant changes to our 2025F NPAT-MI forecast for DXG as 2024 brokerage results and GSW handover guidance are broadly in line with our expectations, pending a fuller review.
  • Updates on key projects:
    • Gem Sky World (4,000 low-rise units; 92 ha in Dong Nai): There are ~1,600 unsold units remaining. The unbilled backlog is ~600 units, with DXG expecting 250–300 units to be recognized in 2025G. Additionally, DXG targets to launch sales for ~700-800 units in 2025G, among which are ~500 units of land plots and ~200-300 units of townhouses. 
    • Gem Riverside (4.3 ha, Thu Duc, HCMC): DXG received the construction permit for this project in September 2024. DXG is preparing to start construction and aims to receive the sales permit for this project by H1 2025G. We currently expect presales at this project to start in 2025F and for handovers to start in 2027F.

DXG’s 2024 results   

VND bn

Q4
 2023

Q4
 2024

YoY

2023

2024

YoY

2024F

2024 as %
 of 2024F

Net revenue 

1,419

1,529

8%

3,725

4,733

27%

4,161

114%

- Property development 

1,086

1,088

0%

2,819

3,261

16%

2,756

118%

- Brokerage 

205

362

76%

602

1,191

98%

1,101

108%

- Others 

127

79

-38%

304

282

-7%

304

93%

Gross profit 

660

769

16%

1,710

2,285

34%

1,882

121%

SG&A expenses 

-333

-358

7%

-977

-1,132

16%

-1,012

112%

EBIT 

327

411

26%

734

1,153

57%

870

132%

Financial income 

41

22

-47%

409

48

-88%

32

148%

Financial expense 

-131

-133

1%

-593

-470

-21%

-425

111%

Net income from affiliates 

-102

-16

N.M.

-112

-38

N.M.

-30

N.M.

Net other income 

-18

22

N.M.

16

36

127%

40

90%

NPAT 

117

306

161%

453

728

61%

317

230%

NPAT-MI 

43

158

269%

172

253

47%

127

199%

 

 

 

 

 

 

 

 

 

Gross margin 

46.5%

50.3%

 

45.9%

48.3%

 

45.2%

 

EBIT margin 

23.0%

26.9%

 

19.7%

24.3%

 

20.9%

 

NPAT-MI margin 

3.0%

10.3%

 

4.6%

5.3%

 

3.0%

 

Source: DXG, Vietcap forecasts (last updated October 29, 2024)  

Powered by Froala Editor