- We downgrade our rating for DHC from BUY to OUTPERFORM and trim our target price by 4%. While DHC’s business experienced a recovery in Q1 2023, the demand outlook has worsened.

- We cut our 2023/24/25F NPAT by 12%/15%/9% due to lower assumptions for price spreads and carton box sales volume. 

- After bouncing back 16% in 2M 2022, carton paper prices in southern Vietnam have slumped and are flat YTD. The trend is similar for export prices and input old corrugated paper (OCC) prices due to weaker-than-expected global consumption, including in China and Vietnam. 

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