- We raise our target price (TP) for CTG by 11.0% to VND40,300/share and maintain a BUY rating.

- Our higher TP is mainly due to (1) a 6.1% aggregate increase in our projection for 2023-2027F NPAT-MI (respective increases of 3.9%/4.7%/2.9%/9.4%/7.7% in 2023/24/25/26/27F), (2) increasing our assumption for CTG’s target P/B from 1.2x to 1.3x, and (3) decreasing our cost of equity assumption for CTG due to an updated beta.

- Our higher 2023-2027F NPAT-MI is underpinned by (1) a 2.4% aggregate increase in NII, (2) 2.6% aggregate increase in NFI (including gains from FX trading), and (3) 21.1% aggregate increase in net other income following our higher assumption for the average recovery rate, which are partly offset by 3.9% and 6.0% aggregate increases in OPEX and provision expenses, respectively.

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