DBS has revised its target price for K. WAH INT'L (00173) to HK$2.8 from HK$3, while maintaining a Buy rating on the stock. The adjustment follows a 13% share price decline over the past three months, which has left the stock trading at an 83% discount to its net asset value (NAV). This discount is wider than the 10-year historical average of approximately 75%.

The new target price is derived by applying a 79% target discount rate to the firm's NAV forecast for June 2027.

DBS views K. WAH INT'L as an overlooked mid-sized developer. The bank notes the company has built a diversified portfolio of residential projects across Hong Kong, the Yangtze River Delta, and the Greater Bay Area. This geographic spread provides a balanced and sustainable source of earnings.

The ongoing sales from these residential projects are expected to further unlock NAV. Additionally, the company's strong financial position offers flexibility to acquire value-enhancing land parcels. DBS believes these factors should support the company's valuation and underpin its share price performance.