- We raise our target price (TP) for DGW by 15% but maintain our MARKET PERFORM rating as the share price has rallied 28% over the past three months.

- Our higher TP is driven by raising our aggregate 2024F-28F NPAT-MI by 18%. While only raising 2024F NPAT-MI by 4%, we lift our forecast NPAT-MI in 2025F/26F/27F/28F by 16%/21%/21%/21%, respectively.

- We believe that DGW’s faster-than-expected expansion into non-ICT categories (i.e., consumer goods, smart home appliances, and office equipment) in 2022-23 will bring a higher-than-expected profit stream over the medium to long term. Therefore, we raise our aggregate 2024F-28F non-ICT sales by 43%, resulting in a 29% lift in aggregate gross profit in the period.

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