- We reiterate our MARKET PERFORM rating despite raising our target price (TP) by 11% as ACV’s share price has increased 10% in the last three months.

- Our higher TP is due to higher NPAT-MI forecasts for 2024F/2025F/2026F by 16%/10%/4%, respectively, driven by stronger growth of international passengers and a lower bad debt provision, partly offset by a projected FX loss from ACV’s JPY debt in 2024F (See page 5).

- Following H1 2024’s strong result, we increase our forecast for international passengers in 2024F/25F/26F to 45 million/49 million/53 million, respectively (vs our previous forecast of 43 million/47 million/51 million). This results in our new 2024F international passengers reaching 108% of the pre-COVID level (2019). However, we lower our 2024F for domestic passengers to 74 million (vs 78 million previously) while maintaining our medium-term forecast unchanged.

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