BMI [BUY +43.0%] - Net financial income to improve, combined ratio to rise

- We cut our target price (TP) for BMI by 16.5% to VND30,400/share but maintain a BUY rating as the share price has declined by 28% over the last three months.

- Our lower TP is due to (1) our 1.2% decrease in our aggregate 2022-2023F NPAT forecast and (2) decrease in our target P/B multiple from 1.6x to 1.3x that outweigh the positive impact of rolling our TP horizon forward to end-2023F.

- Our 1.2% cut in aggregate 2022-2023F NPAT is mainly due to (1) a 28.0% decrease in aggregate underwriting profit that outweighs a (2) 14.0% increase in net financial income.