- 2024-10-29T00:00:00
- Company Research
- We maintain our OUTPERFORM rating for DXS but lower our target price (TP) by 7% to VND6,600/share. Our lower TP is mainly due to a 15% decrease in our aggregate 2024-2028F NPAT-MI forecast, which is partially offset by raising our target P/E to 12.3x from 11.6x and rolling forward our TP horizon to end-2025 from mid-2025.
- We reduce our NPAT-MI forecasts for 2024-28F by 16%, 19%, 19%, 15%, and 11%, respectively, mainly due to anticipated lower profit margins compared to previous projections amid increased competition.
- We forecast NPAT-MI to become profitable at VND147bn (USD5.9mn) in 2024F vs a 2023 net loss of VND168bn (USD6.7mn; due to low property transactions and an abnormal loss from affiliate Dat Xanh Mien Nam), and to grow 93%/51% YoY in 2025/26F, respectively. This improvement is mainly driven by an anticipated recovery in property brokerage revenue and profit margin, given DXS’s leading market position (~30% of total market share as of Q3 2024).
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