We reiterate our BUY rating for DXG despite cutting our target price by 11% to VND39,000/share.

 Our lower target price is mainly due to (1) a lower valuation for the brokerage services segment (see details in our DXS Update Report, dated August 15, 2022), (2) lower valuation for projects in Binh Duong Province as we delay our presales launch assumptions, and (3) our 0.5-ppt higher risk-free rate assumption.

We forecast 2022F NPAT-MI of VND1.1tn (USD46mn; -8% YoY), which is mainly driven by deliveries at Gem Sky World (GSW), Opal Skyline and St. Moritz as well as an expected improvement for the brokerage services segment in H2 2022F. We decrease our 2022F NPAT-MI forecast by 15% mainly due to a lower forecast for the brokerage services segment amid weaker-than-expected H1 2022 sales activities and a higher interest expense forecast for this segment.