We upgrade our rating for BMP to OUTPERFORM from MARKET PERFORM and increase our target price (TP) by 9% to VND93,300/share.
- Our higher TP is due to 1) increasing our 2024-2027F aggregate EBIT by 4%, 2) lower capex of VND80bn (USD3.3mn) each year during 2024-2028F vs VND100bn (USD4.2mn) previously as we foresee insignificant capex needs for BMP throughout the forecasted period, and 3) we roll our TP to end-2024.
- We inch up our 2023F NPAT-MI by 3% to VND995bn (USD41.5mn; +43% YoY), mainly because our higher assumption in EBIT margin offsets our sales volume cut.