- We raise our target price (TP) for DGW by 1% and maintain our MARKET PERFORM rating.

- Our higher TP is mainly driven by rolling our TP horizon forward to mid-2025.

- We maintain our view that DGW’s resilient expansion into non-ICT categories (i.e., consumer goods, smart home appliances, and office equipment) in 2022-23 will bring a higher profit stream over the medium to long term. Additionally, given DGW’s strong distribution expertise, coupled with the rising flow of international brands entering Vietnam, we project DGW’s non-ICT sales to grow at a 2023-28F CAGR of 19% and contribute 35%/62% to DGW’s respective sales/gross profit in 2028.

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