DXG [MARKET PERFORM +6.6%] - Slow sales launches dampen medium-term profit outlook

- We downgrade our rating for DXG from BUY to MARKET PERFORM and cut our target price by 59% to VND16,100/share.

- Our lower target price is mainly due to: (1) our lower valuation for the brokerage services segment (see details in our DXS Update Report, dated December 1, 2022), (2) a lower valuation for Gem Sky World (GSW) and removing the Park View and Park City projects from our valuation, (3) our 0.9-ppt higher WACC assumption and (4) applying a 30% discount to our RNAV valuation.

- We lower our 2022F NPAT-MI forecast by 16% to VND899bn (USD36mn; -22% YoY) mainly due to a weaker revenue outlook for the brokerage services segment and lower handovers at Opal Skyline, partly offset by higher-than-expected divestment gains in 9M 2022.