- We upgrade our rating for DXG to OUTPERFORM from MARKET PERFORM but cut our target price by 19% to VND13,000/share. DXG’s share price has dropped ~30% since December 2022.

- Our lower target price is mainly driven by our (1) lower valuation for the brokerage services segment (see details in our DXS Update Report, dated February 23, 2023) and (2) lower valuations for most medium-term projects as we expect sales launches to be delayed due to prolonged legal procedures.

- We maintain our 2023F NPAT-MI forecast at VND656bn (USD28mn; +341% YoY) mainly due to (1) the new income contribution from Opal Skyline (100% sold) as handovers were pushed back from Q4 2022 to 2023, and (2) continuing deliveries at Gem Sky World (GSW). However, our stronger property profit forecast is offset by our lower profit assumption for brokerage services.

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