DXG – Scheduled handovers at Opal Skyline drive Q4 profit – Earnings Flash
  • 2024-01-31T00:00:00
  • Company Research
  • DXG announced Q4 2023 results with revenue of VND1.4tn (USD58mn; +53% YoY and +15% QoQ) and NPAT-MI of VND47bn (USD1.9mn; vs a net loss of VND342bn/USD14mn in Q4 2022 and -31% QoQ). The Q4 2023 result was mainly driven by scheduled handovers at the Opal Skyline project (~1,500 condo units in total; 100% presold; Binh Duong), which are partially offset by a net loss from DXS’s 49%-owned Dat Xanh Mien Nam (DXMN) affiliate.
  • DXG’s 2023 revenue declined 33% YoY to VND3.7tn (USD153mn) while its NPAT-MI decreased 18% YoY to VND176bn (USD7.3mn). The NPAT-MI result completed 101% of our forecast as the higher-than-expected gross profit offset the unexpected loss from DXMN. Although DXG’s 2023 NPAT-MI matched our forecast, we anticipate a downside risk to our 2024F earnings forecast (pending a fuller review) as the brokerage segment (DXS) in 2023 was behind our expectations. 
  • DXG’s property development segment recorded 2023 revenue of VND2.8tn (USSD115mn; flat YoY) with the main contributor being handovers at Opal Skyline. 
  • For more detailed information about DXG’s property brokerage segment, please refer to our January 31 DXS Earnings Flash.
  • Per DXG, the presales in 2023 were minimal and the company plans to relaunch presales at Gem Sky World (GSW) by H1 2024. The 2023 presales were behind our previous expectation, which we project DXG to achieve a 2023F presales value of ~VND500bn (USD21mn) mainly from the relaunch of GSW (1,700 units remaining at end-Q3 2023) starting in Q4 2023.

DXG’s 2023 results

VND bn

Q4 

2022

Q4 

2023

YoY

2022

2023

YoY

2023F

2023 as % of 2023F

Net revenue

915

1,400

53%

5,512

3,706

-33%

3,578

104%

  • Brokerage 

395

205

-48%

2,018

602

-70%

599

100%

  • Property development

324

1,068

230%

2,793

2,801

0%

2,769

101%

  • Others

196

127

-35%

701

304

-57%

210

145%

Gross profit

459

643

40%

2,970

1,693

-43%

1,464

116%

SG&A expenses

-699

-312

-55%

-2,140

-955

-55%

-889

107%

EBIT

-240

331

N.M.

830

738

-11%

575

128%

Financial income

35

41

18%

464

409

-12%

413

99%

Financial expense

-167

-131

-22%

-521

-593

14%

-656

90%

Net income from affiliates

0

-102

N.M.

2

-112

N.M.

0

N.M.

Net other income

-27

-17

N.M.

-7

16

N.M.

30

55%

PBT

-400

122

N.M.

768

458

-40%

362

126%

NPAT

-395

5

N.M.

534

155

-71%

235

66%

Minority interest

-54

-42

N.M.

319

-22

N.M.

61

N.M.

NPAT-MI

-342

47

N.M.

215

176

-18%

174

101%

 

 

 

 

 

 

 

 

 

GPM

50.2%

45.9%

 

53.9%

45.7%

 

40.9%

 

OPM

N.M.

23.6%

 

15.1%

19.9%

 

16.1%

 

NPM

N.M.

3.4%

 

3.9%

4.8%

 

4.9%

 

Source: DXG, Vietcap forecast (last updated November 23, 2023)

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