DXG Q3 2026: Net Profit Down 98% Despite Record VND 9,056B Prepayments

Overview

Bluemarq Group (HOSE: DXG), formerly Đất Xanh Group, reported Q3 2026 net revenue of VND 682 billion, down about 36% year on year, and net profit after tax of VND 3.2 billion, down 98% from VND 163 billion a year earlier. The contrast with a record VND 9,056 billion in customer prepayments, up 46.6% since the start of the year, is the central tension in the filing for investors tracking the real estate sector.

Key Facts

• Q3 2026 net revenue: VND 682 billion, down approximately 36% year on year.
• Q3 2026 net profit after tax: VND 3.2 billion, down 98% from VND 163 billion in Q3 2025.
• Gross profit: VND 328 billion, down about 45%; gross profit fell VND 270 billion on weaker apartment, land-plot and brokerage revenue.
• 9M 2026 net revenue: nearly VND 2,882 billion, up almost 5%; net profit after tax VND 252 billion, down about 51%.
• Customer prepayments (short-term): VND 9,056 billion at 30 September 2026, up VND 2,880 billion or 46.6% versus the start of the year.
• Inventory: nearly VND 16,330 billion, up about VND 675 billion, equal to almost 40% of total assets of more than VND 41,170 billion.
• Operating cash flow: negative VND 578 billion for 9M 2026, versus positive VND 1,233 billion a year earlier.

What Happened

In its consolidated Q3 2026 financial statements, Bluemarq Group attributed the profit collapse to high home-loan interest rates, which it said made homebuyers more cautious about transacting and added pressure across real estate businesses. Revenue from apartment sales, land plots and real estate brokerage all declined in the quarter, cutting gross profit by VND 270 billion. Financial expenses rose VND 13.74 billion and general and administrative expenses rose VND 25.86 billion, while selling expenses fell VND 106 billion, only partly offsetting the revenue shortfall.

The balance sheet tells a different story from the income statement. Short-term customer prepayments reached VND 9,056 billion at 30 September 2026, up VND 2,880 billion from the start of the year. This is cash already collected from buyers that does not yet meet revenue recognition criteria; for developers it typically tracks collection progress at projects and converts to revenue in later periods once handover and accounting conditions are met. Inventory remained large at nearly VND 16,330 billion, including VND 11,949 billion of real estate held for sale, VND 3,884 billion under construction and VND 482 billion completed. The company also carries more than VND 7,046 billion in short-term prepayments to suppliers and over VND 6,366 billion in other short-term receivables. The filing does not disclose a project-level schedule for when prepayments will be recognised as revenue.

Market Context

DXG trades on HOSE and closed at 10,100 on 31 October 2026. The Q3 result lands in a Vietnamese residential property market still constrained by elevated mortgage rates, with developers reporting slow absorption in the mid-income apartment and land-plot segments that drive DXG’s revenue mix. The gap between record customer collections and near-zero quarterly profit reflects the sector’s accounting lag rather than a collapse in demand at the point of sale, but it also means reported earnings will stay weak until handovers resume. Negative operating cash flow of VND 578 billion, against positive VND 1,233 billion a year earlier, and a decline in cash balances add balance-sheet pressure at a time when the broader market is sensitive to real estate credit and bond refinancing conditions.

Strategic Significance

The investment case for DXG now rests on conversion, not sales. Prepayments of VND 9,056 billion represent contracted demand already funded by buyers, and the key question is the pace at which those projects are completed and handed over to release revenue and margin. Inventory of VND 16,330 billion, close to 40% of total assets, is the asset base that must be worked down to generate that conversion. Until then, the company carries a large working-capital burden: negative operating cash flow, sizeable supplier prepayments and other receivables mean the balance sheet, not the income statement, is the better gauge of execution. A sustained recovery in reported profit requires both handover progress and a easing of mortgage rates that would lift new bookings.

What to Watch

• Q4 2026 and full-year 2026 results, and whether prepayments begin converting into recognised revenue.
• Handover schedules and construction progress at the projects underpinning the VND 9,056 billion prepayment balance.
• Movement in inventory, particularly the VND 3,884 billion under construction, as a proxy for completion pace.
• Operating cash flow trend after the VND 578 billion nine-month outflow.
• Mortgage rate levels and State Bank of Vietnam credit policy for residential lending, which the company cited as the main demand constraint.