Dat Xanh Real Estate Service & Construction Corp – Outperform (DXG : HSX – Real Estate)

Dat Xanh Real Estate Service & Construction Corp – Outperform (DXG : HSX – Real Estate)

• DXG has published its agenda for their AGM to be held on March 16, 2019.

• Conservative FY2019 targets with 7.6% y/y in sales growth and 1.8% y/y in NPATMI.

• DXG plans to increase chartered capital to VND 5,202 billion from VND 3,501 billion (+48.6%) through issuing ESOP shares, stock dividends and right issues.

• Develop some shophouse and land plot projects in other provinces to boost earnings.

• HSC maintains FY2019 forecasts, calling for NPATMI growth of 10.6% y/y. Thus, we forecast FY2019 EPS of VND 3,501, giving us a forward P/E of 7.1x.

• We have a fair value price of VND 33,300 per share based on our RNAV calculation, valuing the Company at a forward PE of 9.5x.

• Reiterate Outperform.

HSC