DAT PHUONG GROUP JOINT STOCK COMPANY

Executive Summary

DAT PHUONG GROUP remains a moderate credit risk with recent signs of stabilization and recovery after a difficult 2023. Profitability has improved in 2024 and early 2025, though the company is still recovering from prior capital compression. As a publicly listed company operating in infrastructure, real estate, and energy, DPG benefits from scale and market access — but remains sensitive to sector cycles, liquidity timing, and execution risk.

Business Overview

DAT PHUONG GROUP JSC is a publicly traded enterprise that constructs civil infrastructure, hydroelectric plants, and real estate development. Founded in 2002 and listed on HOSE under the symbol DPG, the company has grown through project execution and property investment. The group employs over 500 people and operates nationwide from Hanoi.

Financial Performance Overview

• 2023 marked a sharp correction:

  • Revenue: ~$121 million (−11% YoY)

  • Profit: ~$8.5 million (−60% YoY)

  • Total assets and equity dropped ~42% and ~49% respectively

  • Working capital weakened to ~$14 million

• 2024 showed recovery:

  • Revenue modestly rebounded

  • Net profit rose ~13% YoY

  • Margins began to recover, suggesting improved cost management

• 2025 Year-to-date:

  • Q2 profit grew over 30% YoY

  • Revenue momentum improved

  • The company is on track to meet its aggressive full-year profit plan, with ~26% of the annual earnings target already achieved in Q1 alone

Credit Risk Assessment

Strengths:

• Profit rebound in 2024–2025: Profitability is improving after the 2023 dip, indicating more substantial cost control and better margin management.

• Public listing: As a listed entity, DPG benefits from transparency, access to capital, and corporate governance.

• Sector experience: The company has over 20 years of operating history and demonstrated capacity in executing civil and energy projects.

Concerns:

• Balance sheet compression: The sharp reduction in assets and equity in 2023 eroded internal buffers. Updated balance sheet data is still needed to assess whether capital strength has been restored.

• Sector exposure: DPG remains vulnerable to delays in public infrastructure spending, property market cycles, and liquidity tightening.

• Working capital sensitivity: Despite recent gains, cash flows from operations must remain strong to support ongoing project execution without strain.

Credit Recommendation

Credit posture: Moderate risk — cautiously constructive.

1. Exposure limit: Maintain a moderate cap, with room to expand pending confirmed FY2024 balance sheet improvements.

2. Tenor: Short-cycle terms (30–45 days max) are appropriate; avoid long unsecured exposures.

3. Collateral: For large engagements, consider performance guarantees or project-level assignments.

4. Monitoring:

   • Watch quarterly financials for margin consistency and debt service

   • Track progress against the 2025 business plan

   • Review the audited FY2024 balance sheet when released in full

Conclusion

DAT PHUONG GROUP has exited a challenging year and shows meaningful operational recovery. Revenue is stabilizing, profits are improving, and 2025 is starting strong. However, given the balance sheet damage in 2023 and inherent sector volatility, any increase in exposure should be disciplined, monitored, and supported by commercial protections. If the positive trend continues through Q3–Q4 2025, a reclassification to lower risk may be warranted.