- We raise our target price (TP) for CTG by 11.3% to VND39,300/share but downgrade our rating from BUY to OUTPERFORM as its share price has increased ~34% in the last three months.

- Our higher TP is mainly due to an 8.7% increase in our projection for aggregate 2024-2028F NPAT-MI (respective increases of 7.6%/8.3%/5.7%/11.1%/10.0% in 2024/25/26/27/28F) and an increase in our assumption for target P/B from 1.3x to 1.4x.

- Our higher 2024-2028F NPAT-MI is derived from (1) a 5.0% aggregate increase in NII following an upward revision in our credit growth assumption from ~10% to ~11%, (2) 1.7% aggregate increase in pure NFI, and (3) 4.8% aggregate decrease in OPEX. These are partly offset by an 8.6% aggregate increase in provision expenses. Our average assumption for 2024-2028F credit costs remain relatively unchanged at ~1.50%.

Powered by Froala Editor