DXG_BUY_TP 30,200 VND_Upside 29_1Q2021 Bussiness Update_BSC Company Update

 Valuation  

• In 2021, BSC estimates that the parent company's revenue and profit after tax will reach VND 7,860 billion (+172% YoY) and VND 1,521 billion compared to a loss of -432 billion in 2019, 2021 FW EPS = 2,778 VND/share, 2021 FW PE = 8.5 times.

Investment Thesis

• Profit in 2021-2022 recovers strongly thanks to the handover of a series of projects as well as brokerage segment and low profit base in 2020.
• The total value of products for sale of DXG in the period 2020-2023F is recorded at an average of 6,000-7,000 billion VND/year.
• Expecting to speed up the legal progress in Ho Chi Minh City from 2021, thereby unlocking accumulated assets such as Gem Riverside, Gem Premium.

• The plan to open and sell projects has been delayed due to legal issues and the Covid-19 epidemic.
• General risks in the real estate industry (loan interest rates, industry cycle).

• Q1/2021 business results were recorded at VND 530 billion (+687% YoY), in line with our forecast. DXG's revenue in Q1/2021 was recorded at VND 2,954 billion (+391% YoY).
• Total value of new opening sales (pre-sales) in Q1/2020 of DXG is estimated at VND 955 billion with 420 products, a strong growth over the same period (13 products).   
• Successful DXS IPO, the number of registrations exceeds the number of offers, is expected to list at the end of May 2021.  
• DXG adjusted the target NPAT and minority interest to be estimated at VND 1,400 billion.