We upgrade our recommendation for KDH from OUTPERFORM to BUY. We believe 2014 is not only a turnaround year with significant improvement in profitability but also a foundation year for strong growth in the future. The successful launch and sales of Mega Residence – the first of many in the mid-income townhouse projects in the Mega Series – validates KDH’s focus on unique segmentation of affordable townhouses and concentration in District 9 where rapid infrastructure build up will make these projects very marketable.