- We raise our target price (TP) for ACB by 2.7% to VND34,300/share and maintain our BUY rating. Our higher TP is mainly driven from (1) a 2.6% aggregate increase in our projection for 2023-2027F NPAT (+4.5%/+6.5%/+4.1%/+1.6%/-1.1% in 2023/24/25/26/27F, respectively), and (2) the positive impact of rolling our TP horizon forward to mid-2024F. These factors are partly offset by lowering our assumption for ACB’s target P/B from 1.40x to 1.30x.
- We raise our projection for 2023F NPAT by 4.4% to VND15.7tn (USD666.8mn; +14.5% YoY) as a result of (1) a 6.1% decrease in our OPEX forecast and (2) 14.1% decrease in our projection for 2023F provision expenses due to the positive effect of Circular 02/2023, which outweigh (1) a 0.7% decrease in our 2023F NII projection and (2) 0.8% cut in our forecast for 2023F NOII due to weak consumer sentiment regarding the bancassurance market.