- We maintain our OUTPERFORM rating for GMD and raise our target price (TP) by 30% to VND79,700/share. GMD’s share price has rallied 31% over the last three months. 

- Our increased TP stems from: 1) respective 13%/22%/18% NPAT-MI increases in 2024F/25F/26F due to underestimated positive effects of GMD’s cost optimization and enhanced operational efficiency from consolidating northern port activities to the Nam Dinh Vu port, 2) extending our target price horizon to end-2024, and 3) eliminating the 10% discount previously applied on GMD.

- We raise our 2023F core NPAT-MI (i.e., excluding impact from the Nam Hai Dinh Vu (NHDV) port divestment) by 7% to VND1.1tn (USD46.7mn; +13% YoY) as the improvement in gross margin of consolidated port and logistics in 9M 2023 was better than our expectation. 

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