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Company Quarterly Earnings Update – DXS VN – Q4 2024
Summary of Q4/2024 results and outlook of Dat Xanh Real Estate Services (DXS VN)
- The implementation of three real estate laws has spurred new supply growth, yet the majority remain concentrated in the high-end segment, diverging from prevailing demand for mid-end housing. This mismatch has fueled primary price increases in Hanoi and HCMC while keeping transaction volumes subdued. Looking ahead, the sustained impact of these regulatory changes, coupled with accelerating infrastructure investment in metro lines and TOD initiatives, is expected to drive supply expansion beyond central areas and broaden access to affordable housing.
- DXS posted total revenue of VND2,375bn (+20.1% y/y), propelled by brokerage revenue of VND1,233bn (+90.3% y/y) from 7,100 transactions (+86.8% y/y). DXS outperformed the national transaction growth rate in 2024, aided by a sharp decline in small brokerage agencies in 2023-2024. Property investment revenue declined 13.0% y/y to VND 1,050 bn due to weak hospitality property sales. Cost controls improved the operating margin to 18.9%, leading to a net profit of VND 141 bn, a recovery from the VND 168 bn loss in 2023. The company maintains a low financial leverage with a D/E ratio of 0.24x.
- Going forward, demand for low- and mid-end segments remains strong, infrastructure development will make houses in suburban areas, which are more affordable, more accessible for people who work in city centers, particularly the expansion of metro lines in Hanoi and HCMC. Developers will likely focus on these emerging zones due to land availability. Southern provinces like Binh Duong, Dong Nai, and Long An are expected to attract more capital as HCMC’s high prices push demand towards these well-connected areas. Additionally, government efforts to create new industrial zones are drawing residents and workers to these regions.
- In 2025, DXS’s brokerage segment is projected to be driven by increasing number of transactions (+11.0% y/y), a slower growth rate than prior years due to rising competition among agencies, supported by approximately 40 major projects in the pipeline. Property investment will focus on completing ongoing developments and selling remaining units this year. By 2026, brokerage transactions are expected to rise, fueled by increased supply in the affordable and mid-end segments, alongside new township projects in satellite provinces offering diverse housing options.
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