AST - Q2 only improves slightly vs Q1, trailing our expectations

- AST released its Q2 2023 results with flat revenue QoQ and NPAT-MI increasing 21% QoQ. H1 2023 revenue and NPAT-MI achieved 41% and 34% of our respective full-year forecasts.

- In H1 2023, foreign and Chinese arrivals reached 66% and 22% of their respective pre-COVID levels. While Chinese arrivals continued to recover in Q2 2023, foreign arrivals only edged up QoQ as Q2 is a low season.

- We expect improvements in H2 2023 vs H1 2023 as H2 is a high season for international arrivals in Vietnam. In 7M 2023, foreign and Chinese arrivals reached 67% and 26% of their respective pre-COVID levels.