KDH [OUTPERFORM +10.7%] - Solid presales outlook due to new project launches

- We downgrade our rating for KDH to OUTPERFORM from BUY and trim our target price (TP) by 1.2% to VND33,000/share.

- Our lower TP is mainly due to (1) our lower valuation for the Emeria project (previously known as Doan Nguyen) due to a lower-than-expected number of high-rise units (~620 high-rise units as stated at KDH’s April 2023 AGM vs our previous estimate of ~2,000 high-rise units) and (2) a higher net-debt balance at end-Q1 2023.

- We reiterate our 2023F NPAT-MI forecast of VND854bn (USD36mn; -23% YoY) as we continue to anticipate deliveries of the remaining units at Classia (~180 units in total — ~85% presold at end-Q1 2023) and the Clarita project expected to launch in end-2023F.