- We lower our target price for DXS by 19% to VND8,100/share and downgrade our rating from BUY to OUTPERFORM. 

- Our lower target price is primarily driven by (1) a higher net-debt balance at end-2022 and (2) a 16% decrease in our aggregate 2023-2027F NPAT-MI as we now expect a weaker earnings outlook in 2023-2024F, which is primarily due to ou    r expected lower number of transactions and DXS’s short-term shift to traditional brokerage and property sales (these businesses have lower margins than full-service brokerage).

- Following a higher-than-expected net loss in Q4 2022 of VND100bn (USD4.2mn) vs a VND3.4bn net loss in our previous forecast, we cut NPAT-MI for 2023/2024F by 54%/38% as we expect a further impact on DXS due to headwinds in property market during 2023.

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