- We reiterate our OUTPERFORM rating on ACG and keep our target price (TP) nearly unchanged. Although we cut our respective 2024F/25F/26F NPAT-MI by 26%/20%/20% due to weaker-than-expected demand for H1 2024, this is offset by rolling our TP horizon from mid-2024 to end-2024 and raising our target P/E from 8.0x to 11.0x given an expected recovery in earnings.

- Per ACG, the outlook of orders for H1 2024 is similar to that of H1 2023. We expect the impact of weakened primary condo sales in 2023 on home furnishing demand to be partly delayed as ACG’s products are installed at the final phase of construction.

- However, we forecast 2024F revenue to grow 8% YoY as demand from existing homes and exports should improve.

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