- We maintain our MARKET PERFORM rating for DXS and revise our target price to VND7,700/share, down from our previous target price of VND9,600/share (adjusted for a 26.7% bonus share issuance in October 2023).

- Our 20% reduction for the target price is mainly driven by a 33% decrease in our aggregate 2023-2027F NPAT-MI forecast as we observe a slower-than-expected QoQ improvement in property market activities in Q3 2023 (see more details in our October 12 Sector Flash), which is partially offset by rolling forward our target price horizon to end-2024.  

- We expect further recovery in property transactions for 2024F vs a low base in 2023F, driven by our expectations for (1) ongoing improvement in homebuyer confidence and brokerage activities, and (2) smoother legal procedures for developers. As such, we forecast DXS’s NPAT-MI at VND315bn (USD13mn) in 2024F and VND552bn (USD23mn) in 2025F vs a 2023F low base (VND3bn/USD120,000). 

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