DHC [OUTPERFORM +17.8%] - First signs of recovery in paper prices

- We reiterate our OUTPERFORM rating for DHC despite increasing our target price by 4%.

- The primary reason for the increase in our target price is extending our target price horizon from mid-2024 to end-2024. This is partly offset by cuts to our 2023/24F NPAT-MI of 17%/4%, respectively, while we maintain our 2025F NPAT-MI unchanged.

- We cut our projected paper ASP and carton box sales volume for 2023-2024F as we forecast a slower recovery in packaging paper demand in accordance with export activities and domestic consumption.