We update our KDH target price to VND24,500, corresponding to an OUTPERFORM rating. Demand for townhouses and villas in HCMC has been surging recently with transaction volume up 64% (Q4 2015 y-o-y growth), mostly driven by projects in D.9 where KDH’s land bank is located. Improving infrastructure and expanding residence communities in this area ensure that demand will continue to stay strong for the foreseeable future.