We lower our target price (TP) by 8.6% to VND57,200/share but maintain our OUTPERFORM rating for BVH.

Our lower TP is due to (1) 21.8%/25.0% decreases in our projections for 2022/2023F NPAT and (2) cutting our target P/B from 2.0x to 1.9x, which outweigh the positive impact of rolling our TP horizon forward to end-2023F.

We decrease our 2022F net income forecast by 21.8% due to (1) 2.6% lower net financial income and (2) a 5.6% increase in underwriting losses. The latter is due to a 4% decrease in our 2022F direct premium forecast that outweighs our 9.6% cut in underwriting and G&A expenses.