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Company Quarterly Earnings Update – DXG VN – 9M 2024
Summary of the 9M/2024 results and outlook of Dat Xanh Group JSC (DXG VN)
- The real estate market is showing signs of recovery, supported by easing legal constraints and sustained demand. In 9M/2024, the government approved 61 new projects (+30% y/y), introducing over 40,000 units (+5% y/y) nationwide. However, a mismatch persists between supply and demand, as supply remains concentrated in the high-end segment, while demand is centered on affordable and mid-end housing.
- Net revenue reached VND3,204 bn (+38.9% y/y), in which project development contributed 67.8% of total revenue, primarily driven by the delivery of around 700 apartments from the Opal Skyline in Binh Duong and 135 low-rise units from Gem Sky World (GSW) in Dong Nai. The brokerage segment also demonstrated solid growth, recording approximately 4,900 transactions, up 115.4% y/y. Operating profit surged to VND741 bn (+82.3% y/y) as SG&A increased at the slower pace than sales, which supported the operating margin rose to 23.1% from 17.6% in the prior year. However, in the absence of the one-off financial income recorded in 9M/2023 from a project sale, net financial expenses were VND311 bn, three times higher than the previous year, limited bottom-line growth, with net profit reaching VND95 bn (+4.9% y/y).
- After completing the delivery of Opal Skyline in 2024, DXG’s project pipeline narrows to two key developments. The first is the GSW: while the project achieved legal readiness in early 2024, its relaunch has been postponed to 2025 due to subdued demand and a competitive secondary market with lower pricing. We believe demand will recover as Long Thanh Airport becomes operational in 2026, driving interest in the area. The second project, DXH Riverside in HCMC, received construction permit approval in October, positioning it for a potential sales launch in H1/2025 upon the completion of ground construction. The brokerage segment shows continued improvement in transaction volume and value, signaling recovery momentum. In December, supply will rise sharply, driven by neighboring provinces of HCMC, including Binh Duong, Long An offering apartment at an average of VND30 mn/sqm. The southern region is expected to add 10,000 apartments in Q4, bringing 2024’s total new supply to over 30,000 units—nearly triple last year’s figure and the highest in five years.
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