DRC [MARKET PERFORM +6.6%] - Slower radial volume growth trajectory on unfavorable tariff

- We maintain our MARKET PERFORM rating for DRC and trim our target price (TP) by 1% to VND34,200/share.

- Our lower TP is due to our 4% lower aggregate 2024-2030F NPAT-MI forecast (respective cuts of 8%/3%/4%/4%/4%/4%/5% for 2024/25/26/27/28/29/30F) partially offset by the positive impact of rolling our TP horizon forward to mid-2025.

- Our lower aggregate 2024-2030F NPAT-MI forecast is caused by our expectation for insignificant positive impacts on DRC from the US anti-dumping duty (AD) investigation on truck and bus tires (TBR) exported from Thailand. In contrast, we previously expected the US’ affirmative decisions to support DRC’s export volume of radial tires to the US in H2 2024.