- We reiterate our OUTPERFORM rating but lower our target price (TP) for ACV by 7% as we cut 2024F-2025F NPAT-MI (excluding contributions from State-invested assets) by 10%/11%, respectively, which is partly offset by rolling our TP horizon from mid-2024 to end-2024.

- We increase our 2023F NPAT-MI by 12% as 9M 2023 aeronautical revenue and debt revaluation FX gains beat our expectation, which is partly offset by higher bad debt provisions. However, we cut our 2024F/25F mainly due to higher assumed bad debt provisions. 

- We forecast aggregate bad debt provisions of VND5.4tn for 2023F-2025F, which is equivalent to 15% of aggregate EBIT during the period. We expect ACV to reclaim most of these receivables during 2026-2028.

Powered by Froala Editor