- We maintain our BUY rating for BMP and increase our target price by 5% due to 1) our 3% increase in aggregate 2022-2026F NPAT-MI on the back of BMP’s gross margin expansion amid the ongoing input plastic price correction and 2) BMP’s higher cash balance at end-Q2 2021. These factors are partially offset as we increase our WACC assumption due to our higher risk-free rate assumption.

- BMP reported positive H1 2022 results with NPAT-MI of VND273bn (USD11.7mn; +117% YoY) on the back of expanding margins amid the input plastic price correction. 

- We revise up our 2022F NPAT-MI forecast by 12% to VND543bn (USD23.3mn; +12% YoY) as we 1) maintain our 2022F sales volume assumption at 102,700 tonnes (+11% YoY) and 2) increase our 2022F gross margin assumption to 24.1% from 21.3% due to better-than-expected H1 2021 gross margin and the ongoing input plastic price correction.  

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