DXS [MARKET PERFORM +7.8%] - 2024 earnings to recover from improving property transactions

- We maintain our MARKET PERFORM rating for DXS and trim our target price by 1% to VND7,600/share.

- Our lower target price is mainly driven by a 12% decrease in our aggregate 2024-28F NPAT-MI forecast due to a lower projected GPM for the property sales segment, which is partially offset by a higher target P/E of 12.4x from 11.0x previously.

- We expect DXS’s NPAT-MI to recover to VND230bn (USD9.8mn) in 2024F and VND454bn (USD19.4mn) in 2025F vs a 2023 net loss of VND168bn (USD7.2mn; due to low property transactions and an abnormal loss from affiliate Dat Xanh Mien Nam). In 2024, we anticipate a gradual improvement in overall property transactions, given our expectations for (1) ongoing improvement in homebuyer confidence and brokerage activities, and (2) smoother legal procedures for developers.