- We raise our target price (TP) for HVN by 9.7% to VND14,700/share and maintain our MARKET PERFORM rating as the stock price has increased 3% over the past one year.

- Our higher target price is mainly driven by our 18% higher 2024F EBITDAR forecast which is partially offset by our lower targeted EV/EBITDAR of 5.0x vs 7.5x previously and our change in valuation methodology for subsidiaries and associates from the P/E multiple to book value. 

- Our higher 2024F EBITDAR projection is mainly driven by (1) our 23% higher assumptions for HVN's international passenger volume, partially offset by 10% cut domestic passenger; (2) 7% higher passenger yield, and (3) our assumption that HVN can optimize costs due to higher load factors of 81% vs 76% previously.

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