Company Quarterly Earnings Update – DXG VN – 2020

Summary of the 2020 results of Dat Xanh Group JSC (DXG VN)

2020 results highlights:
  • DXG reported a net revenue of VND2,891bn, down 50.3% y/y in 2020. As for the project development business, there were no major development projects to book revenue in 2020. Brokerage business’s sales declined by 31.7% y/y to VND1,941bn as the real estate market cooled down due to the impact of the COVID-19. The company also bear a financial loss of VND526bn from divestment activity. All in all, DXG posted a net loss of VND432bn in 2020.
  • In 2020, DXG has launched sales for three projects, including Gem Sky World (land project in Long Thanh), St. Moritz (apartment project in HCMC) and Opal Skyline (apartment project in Binh Duong), which were almost sold out. The related sales are expected to be booked from 2021 onwards.
  • By the end of 2020, DXG had a total of VND1,985bn in cash and cash equivalents, accounting for 8.4% of total assets. Debt amounted to VND5,945bn, an increase of 35% YTD mostly due to long-term loans for the Long Thanh project’s investment. Financial leverage was moderate with a D/E ratio of 0.65x and a D/A ratio of 0.25x.
  • DXG’s results were not favorable in 2020 due to the construction license issues in HCMC and the impact of Covid-19. However, we expect that the overall real estate market will recover in 2020, and the construction license issues can be resolved, which will benefit DXG’s brokerage business and project development business.
  • Based on that outlook and current project selling progress, we expect the company’s net profit to surge strongly to VND1,790bn in 2021 and VND1,637bn in 2022.

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