- We maintain our BUY rating for GMD but cut our target price (TP) by 12% to VND55,700/share vs VND63,300/share as previously. 

- Our lower TP is driven by (1) our 0.9-ppt higher WACC assumption and (2) 6.6%/6.4% respective cuts to our 2023/2024F NPAT-MI forecasts. The downward revision in our TP is partially offset by the positive effect of rolling our TP horizon to end-2023.

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

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