We reiterate our BUY rating for DXS despite cutting our target price by 61% to VND10,000/share.

Our lower target price is mainly due to (1) a 51% decrease in our aggregate 2022-2026F NPAT-MI forecast as a result of a weaker revenue growth (especially in 2022-2023F), (2) our 0.9-ppt higher WACC assumption and (3) applying a 30% valuation discount (see page 6).

We cut our 2022F NPAT-MI by 57% to VND415bn (USD17mn; -23% YoY) as we expect low revenue as a result of an overall slowdown of property transactions as well as high SG&A and interest expenses to translate to a net loss of VND3.4bn (USD0.14mn) in Q4 2022.