- We raise our target price (TP) for ACB by 1.2% to VND33,400/share and maintain our BUY rating.

- Our higher TP is mainly driven by a higher valuation produced by the residual income method that is derived from (1) a 4.5% aggregate increase in our projection for 2023-2027F NPAT, which outweighs (2) a 10-bp increase in ACB’s cost of equity due to an updated beta.

- We raise our projection for 2023F NPAT by 5.4% to VND15tn (USD638.3mn; +9.6% YoY) as a result of (1) a 4.5% increase in our NII forecast, (2) a 40.8% increase of our projection for 2023F NOII due to the strong performance of bancassurance and card services and (3) a 3.6% decrease in provision expenses outweighing a 23.8% increase in our 2023F opex projection.

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