We attended GDT’s 2023 AGM in HCMC on March 25. We maintain our BUY rating for GDT despite cutting our target price (TP) by 8%.

We cut our aggregate 2023F-2025F NPAT by 10% as the small-product business is recovering slower than expected but will be partly offset by a stronger-than-expected new furniture line.

GDT’s customer orders are recovering as customer destocking has eased. GDT’s order backlog fills the company’s production capacity to May 2023, which is behind its normal schedule.