- We maintain our BUY rating for KDH but lower our target price by 2% to VND36,300/share from our previous one of VND37,200/share (adjusted for a 10% stock dividend in October 2023)

- Our lower target price is primarily due to (1) a lower ASP assumption for The Privia, (2) a shift in our expected presales at The Solina and Le Minh Xuan IP Expansion projects to begin in 2025F instead of 2024F, and (3) an increased WACC assumption. These factors are partly offset by a rolling forward our target price horizon to the end of 2024.

- We forecast 2023F NPAT-MI of VND1.0tn (USD42mn; -9% YoY) mainly thanks to handovers of ~45 remaining units at Classia (~180 units in total; ~92% presold and ~75% handed-over as of end-Q3 2023) that will be recognized in Q4 2023F. We raise our 2023F NPAT-MI forecast by 20% mainly due to 9M 2023 higher GPM and lower tax expenses vs our previous projections.

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