- We increase our target price (TP) for DHC by 6% and upgrade our rating from OUTPERFORM to BUY. The increase in our TP is due to a change in our valuation methodology and a more optimistic view on the short-term valuation of DHC. We keep our 2024F EBITDA unchanged and nudge up our 2025F and 2026F EBITDA by 2% and 1%, respectively. 

- Firstly, we remove DCF from our valuation mix because DHC's capex for Giao Long 3 is uncertain. This factory will not contribute revenue until 2027, and DHC's share price is highly correlated to short-term earnings.

- Secondly, we change our valuation multiple from P/E to EV/EBITDA to avoid the distortion of interest expenses during the first two years after Giao Long 3 comes online.

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