- We maintain our BUY rating for IDC and raise our target price by 13.7% to VND56,500/share. Our higher target price is driven by (1) a higher valuation for the energy segment mainly due to a higher target P/E for the hydropower subsegment of 12.0x vs 9.0x previously, (2) our lower WACC assumption, and (3) removing our previous 10% valuation discount. 

- We edge up our 2023F NPAT-MI forecast by 1% to VND1.9tn (USD79.5mn) as (1) the inclusion of retrospective one-off revenue recognition from the Que Vo 2 IP in Q2 2023 is partially offset by (2) our 4.3-ppt lower GPM projection for the IP segment and (3) adjusting our IP land sales handovers to ~95 ha vs ~100 ha as previously.

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