We maintain our BUY rating for GMD and raise our target price by 1.0% to VND63,300/share.

Our higher target price is driven by (1) our more positive forecast for the logistics segment and (2) higher targeted P/B multiple of 1.2x vs previously 1.0x for natural rubber plantations (see page 4), which are partly offset by (3) our 0.5-ppt higher risk-free rate assumption and (4) now projecting for Gemalink Phase 2 to start contributing in 2024F vs previously 2023F.

We continue to factor the dilution effect into our forecasts and valuation from an upcoming rights issuance for ~100.5 million shares at a price of VND20,000/share, which was approved by shareholders at GMD’s April 2022 AGM (see page 5).