• We cut our target price (TP) for CTG by 20.9% to VND32,100/share but maintain a BUY rating.
• Our lower TP is mainly driven by (1) a 23.3% cut in our projection for aggregate 2022-2026F NPAT-MI and (2) an increase in our assumption for CTG’s cost of equity from 13.0% to 15.8%, which are partly offset by the positive effect of rolling over our TP to end-2023.
• We cut our 2022F NPAT-MI by 18.7% to VND16.4tn (USD663mn; +16.7% YoY) vs our previous Update Report mainly due to a 26.7% increase in provision expenses, which is partly offset by a 14.3% increase in gains from FX trading following higher-than-expected 9M 2022 results.

Powered by Froala Editor