DXG – Dat Xanh Real Estate Services & Construction

■ The inclusion of DXG in the FTSE Vietnam Index lifted its share price by 33% over the past month, shrinking its discount-to-NAV to 4%.
■ DXG’s revenue surged 80% yoy in FY16, driven by the completion of its flagship affordable apartment project Sunview and its first mid-end project Luxcity.
■ New project launches caused SG&A to swell 77% yoy, but the revenues generated by those new projects will not be recognised until FY17-18F.
■ Downgrade to Reduce; valuation now looks unattractive, in our view, following the 33% increase in DXG’s share price in the past month.