The analysts think that Dat Xanh Group has efficiently made use of its strengths, including market knowledge, financial resource management and distribution, especially the fact that Dat Xanh (DXG) executed the increase of clean land fund through M&A since 2012.
From distributor to professional project developer
Dat Xanh brand officially appeared in real estate market since Nov.2003 as a real estate broker and distributor. After almost 15 years of development, DXG has been a big real estate distributor in Viet Nam for many years with the sales force of more than 1,500 people and 2,000 collaborators with 60 linked centers throughout the nation.
In 2016 Dat Xanh was acknowledged as 1 of 3 biggest real estate distributors of Viet Nam with the total number of products distributed by DXG is 8,000 products, accounting for a great portion of supply for the market, about 17.4% of Viet Nam real estate market share.
Reaching further, DXG has strongly shifted to become a leading “Project developer” with 27 projects have been implemented, total clean land fund of 446 hectares and 4 million square meters of construction land with 25,000 products.
With the strategic model of a cycle “Investment – Construction – Service”, since 2007, DXG had started project development with typical projects such as Sunview 1, Sunview 2, Phu Gia Hung with the scale of less than 1 hectare. However, since 2011 DXG has started to focus on the implementation of projects from 3-5 hectares such as Gold Hill (26 hectares), Sunview Town (3.6 hectares, 4 Blocks, 1,639 apartments), Luxcity, Opal Riverside (2.1 hectares) …
In its 10 years being a project developer, DXG has confirmed the capability of construction as well as outstanding project implementation capability compared to other real estate firms in the sector. Projects whose construction implemented by DXG are evaluated to have good quality, on-time or early delivery such as Sunview Town project which was delivered 6 months earlier or
Luxcitywhich was delivered 4 months earlier than planned.
In 2016, DXG created a big mark on HCMC real estate market by implementing a series of projects, forming a new wave in the market such as:
Opal Riverside premium resort-apartment (Thu Duc District) with total investment of more than 1,000 billion dongs including 626 apartments;
Opal Garden premium apartment (Thu Duc District) with more than 400 apartments, etc.
DXG is also considered as the most effectively operating business in Viet Nam stock exchange with CAGR of 58%/ year and profit of 75%/year in the period 2012-2016; achieving 64%/year and 55% for the period 2007 – 2016. Dividend paid to shareholders is always ensured better than other businesses in the sector with average payout ratio of 15% - 20% annually. With these outstanding results, in 2016 DXG was selected by Forbes as one of the 50 most efficiently operating business of Viet Nam Stock Exchange.
After 10 years developing real estate projects, Dat Xanh has reached 821 billion dongs of profit before tax in 2016, 50 times larger than 2007, being in Top 5 listed real estate businesses with highest profit.
2012 turning point!
DXG’s profit increased more than 50 times compared to that in 2007, almost 10 times compared to 2012 where dividend is ensured at the highest rate compared to the businesses in the sector. The analysts stated that in order to maintain the high and sustainable growth momentum, Dat Xanh effectively made use of its strengths in sales, project implementation, financial resource and abundant clean land fund.
DXG also took fewer loans, remained its cash reserve at 30-40% of total asset value to ensure payment to contractors and suppliers. As a result, DXG always ensured timely construction as committed with customers. Cash is always kept at 1,000 billion dongs to support DXG in buying potential projects. Besides, DXG also receives strong support from banks with total credit line of 30,000 billion dongs so far.
TDuring the last 5 years, DXG has continuously taken over projects under M&A such as Gem Riverside (District 2, 6.7 hectares, 1.071 billion dongs), The Palm City (District 9, 7.4 hectares, 250 billion dongs), Petroland – Opal City (District 9, 6.2 hectares, 524 billion dongs), Saigonres – Opal Premium (Thu Duc, 6.7 hectares, 705 billion dongs), Luxcity (District 7, 0.748 hectares, 135 billion dongs), Luxgarden (District 7, 0.9 hectares, 125 billion dongs), Lux Star – Vidoland (District 7, 1.1 hectares, 110 billion dongs), Lux Riverview (District 7, 0.8 hectares, 243 billion dongs), etc. to increase DXG’s fund land to more than 466 hectares at the moment, equivalent to 4 million square meters of construction land and 25,000 products in apartment and land lot segments.
Reportedly, BOM of Dat Xanh Group has just approved 2017 business plan with net revenue of 3,300 billion dongs and net profit of 700 billion dongs, estimated growth of 30% compared to that in 2016 and anticipated dividend ratio of 20%. According to the assessment, this plan is feasible for DXG, making it possible to set a profit target of more than 1,000 billion dongs from 2018.