AsemconnectVietnam - Construction Development Investment Corporation (DIC Corp, code DIG - HOSE) recorded a profit of VND11.23 billion in the third quarter, with a cumulative profit of VND15.18 billion in the first 9 months of 2024, down 84.5% year-on-year and only completing 4.2% of the annual plan.

Escape from losses in the third quarter thanks to interest on deposits and loans
In the third quarter of 2024, DIC Corp recorded revenue of VND47.28 billion, down 79.9% year-on-year, and profit after tax of VND11.23 billion, down 7.2% year-on-year. Of which, gross profit margin dropped sharply from 28.5% to only 9.2%.
During the period, with a sharp decrease in revenue and a narrowing gross profit margin, DIC Corp recorded a 93.5% decrease in gross profit compared to the same period, equivalent to a decrease of VND62.58 billion, to VND4.34 billion.
In addition, also during the period, financial revenue increased by 124.4% over the same period, equivalent to an increase of VND13.41 billion, to VND24.19 billion; financial expenses decreased slightly by 1.5%, equivalent to a decrease of VND0.17 billion, to VND11.46 billion; sales and business management expenses decreased by 26.4%, equivalent to a decrease of VND12.33 billion, to VND34.3 billion, and other activities fluctuated insignificantly.
In terms of core business activities (gross profit - financial, sales and business management expenses), in the third quarter, DIC Corp recorded a loss of VND41.42 billion compared to the same period of VND8.66 billion in profit, a decrease of VND50.08 billion.
Thus, in the third quarter, the gross profit generated by DIC Corp was not enough to pay for financial, sales and business management expenses, DIC Corp escaped losses thanks to a sudden increase in financial revenue.
DIC Corp explained that the sudden increase in financial revenue in the third quarter was mainly due to the accounting of interest on deposits and loans recorded at VND24.2 billion compared to the same period of VND9.73 billion.
Accumulated in the first 9 months of 2024, DIC Corp recorded revenue of VND869.02 billion, an increase of 46.4% over the same period, profit after tax reached VND15.18 billion, a decrease of 84.5% over the same period last year.
In 2024, DIC Corp plans to have revenue of VND ,300 billion, an increase of 72% over the same period; pre-tax profit is expected to be VND1,010 billion, an increase of 508.9% compared to the implementation in 2023 and investment capital is expected to be VND7,211.8 billion, an increase of 541% over the same period.
Thus, ending the first 9 months of 2024 with only pre-tax profit of VND42.01 billion, DIC Corp has only completed 4.2% of the ambitious business plan set by the Board of Directors at the beginning of the year.
Accelerating the increase in inventories and receivables
In addition to continuing to decline in business, in the first 9 months of 2024, DIC Corp also recorded a negative main business cash flow of VND1,165.3 billion compared to the same period of negative VND125.2 billion. In addition, during the same period, investment cash flow was negative VND233.5 billion and financial cash flow was positive VND570.1 billion, mainly increasing debt to offset the deficit in operating cash flow.
It is known that, according to data on iBoard of SSI Securities, DIC Corp has continuously had a cash flow deficit from 2019 to 2022 and has only returned to positive VND2,859.22 billion in 2023.
In terms of asset size, as of September 30, 2024, DIC Corp's total assets increased by 7.9% compared to the beginning of the year, equivalent to an increase of VND1,326.3 billion, to VND18,153.9 billion. Of which, inventory assets were mainly recorded at VND7,864.99 billion, accounting for 43.3% of total assets; short-term receivables were recorded at VND5,985.8 billion, accounting for 33% of total assets; Cash and short-term financial investments recorded VND2,451 billion, accounting for 13.5% of total assets...
During the period, the main asset fluctuations were short-term receivables, which increased by 27.2% compared to the beginning of the year, equivalent to an increase of VND1,281.3 billion, to VND5,985.8 billion; inventories increased by 20.1% compared to the beginning of the year, equivalent to an increase of VND1,313.69 billion, to VND7,864.99 billion; long-term receivables decreased by 94.2% compared to the beginning of the year, equivalent to a decrease of VND1,301.15 billion, to VND80.05 billion (VND1,381.2 billion at the beginning of the year).
DIC Corp explained that long-term receivables decreased mainly due to the absence of the VND1,298.15 billion item of Thien Tan Development Investment Joint Stock Company.
Regarding the scale of capital sources, at the end of the third quarter, DIC Corp's total short-term and long-term debt increased by 18.2% compared to the beginning of the year, equivalent to an increase of VND567.36 billion, to VND3,679.06 billion and equal to 46.3% of total equity (at the beginning of the year, outstanding debt was VND3,111.7 billion and equal to 39.4% of total equity).
N.Nga
Source: VITIC/Tinnhanhchungkhoan