CTG [BUY +28.2%] - Lower support package outweighs higher credit costs

- We raise our target price (TP) for CTG by 13.1% to VND36,300/share and maintain a BUY rating.

- Our higher TP is driven by an 8.9% increase in our projection for aggregate 2023-2027F NPAT-MI and a decrease in our cost of equity for CTG from 15.8% to 14.8% due to an updated beta.

- We raise our 2023F NPAT-MI by 1.5% to VND18.5tn (USD783mn; +9.3% YoY) relative to our previous report mainly due to (1) a 3.1% increase in NII following a 2-bp upward revision in our NIM projection, (2) an increase in credit growth from ~10.0% to ~12.0% and (3) a 15.4% increase in NFI (including FX trading), which are partly offset by a 19.2% increase in provision expenses.