DGW [BUY +22.8%] - Growth strengthened by mobile, office equipment

- We increase our target price (TP) by 4% and upgrade our rating from OUTPERFORM to BUY.

- Our higher TP is due to a 5% increase in our aggregate 2022F-2024F NPAT-MI, which is mostly driven by raising our projected aggregate 2022F-2024F revenue for the mobile and office equipment segments by 7% and 8%, respectively. This is partly offset by a higher WACC assumption due to a 50-bp increase in our house risk-free rate assumption.

- Upside catalysts: Value-accretive M&A that expands DGW’s product portfolio; successful achievement of at least 10% market share for newly added home appliance brands.