- We maintain our BUY rating for KDH and raise our target price by 11% to VND40,900/share. Our higher target price is mainly due to (1) factoring in cash inflows from Keppel Corporation acquiring 49% stakes from KDH in two adjacent residential projects in Thu Duc City, HCMC for VND3.2tn (USD135mn) in June - August 2023 (we believe these are the Emeria and Clarita projects) and (2) removing our 5% valuation discount.

- We continue to expect robust growth in KDH’s residential presales of 32%/68%/36% in 2023/24/25F, respectively, as we believe housing products from experienced developers with strong brand equity like KDH will capture the market recovery. 

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