Summary of the 2021 H1 results of Dat Xanh Group JSC (DXG VN)
- In H1/2021, DXG continued performing sales for existing projects including the major projects of Gem Sky World (Long Thanh project) and the Opal Skyline. The company completed sales from their Opal Skyline project, and another 820 units from the Gem Sky World project. DXG has delivered and booked profits for the first 722 units at Gem Sky World and 1,240 units at Opal Boulevard over the period. Although DXG hasn’t launched any new projects in H1/2021 the company has a strong pipeline to launch over the coming quarters.
- DXG’s net revenue jumped six times to VND6,516bn in H1/2021 thanks to strong booking activities. Net profit after minority interest surged to VND830bn in H1/2021 versus a loss of VND488bn in H1/2020.
- DXG’s financial leverage was moderate with a D/E ratio of 0.53x and a D/A ratio of 0.25x. Their cash position was strong, increasing to VND5,698bn (22.4% of total assets) from VND1,984bn at the beginning of the year as DXG received a cash amount of VND2,288bn through the IPO of its brokerage arm.
- The H1/2021’s results were not considerably different from our previous projection. We assumed that the current social distancing policies will be gradually lifted from the end of August, then DXG’s business will resume accordingly. We expect DXG’s net profit to reach VND1,600bn in 2021 (vs a loss in 2020) and VND1,693 (+5.8% y/y) in 2022.
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