BVH [OUTPERFORM +18.3%] - Earnings growth to rebound in 2023F from low base

- We increase our target price (TP) for BVH by 2.4% to VND50,700/share and upgrade our rating from MARKET PERFORM to OUTPERFORM. BVH’s share price has decreased around 11% over the last three months.

- Our higher TP is due to (1) 3.4%/1.5% increases in our projections for 2023/2024F NPAT-MI and (2) the positive impact of rolling our TP horizon forward to mid-2024F, which outweigh (3) cutting our target P/B from 1.83x to 1.80x.

- We decrease our 2023F net income forecast by 3.4% due to (1) a 5.3% increase in net financial income that outweighs (2) a 5.8% increase in underwriting losses. The latter is due to our 7.5% increase in G&A expenses.