DRC [MARKET PERFORM +3.4%] - Radial tire sales growth on track, higher logistics costs

- We maintain our MARKET PERFORM rating for DRC and trim our target price (TP) by 1% to VND33,800/share.

- Our lower TP is due to lowering our aggregate 2024-2030F NPAT-MI forecast by 1%. This revision is driven by a 6% reduction in our 2024F NPAT-MI projection, while we broadly maintain our forecasts for 2025-2030F.

- We lower our 2024F NPAT-MI growth forecast to 3% YoY from 9% YoY as previously, mainly caused by factoring in higher-than-expected logistics costs in 2024, which is evidenced in H1 2024. YoY NPAT-MI growth is mainly driven by sales volume of radial tires increasing 8% YoY and an improved YoY blended GPM.