- We maintain our OUTPERFORM rating for KBC and raise our target price (TP) by 8% to VND35,200/share. 

- Our higher TP is mainly due to (1) a lower net debt balance at end-Q2 2023 resulting from cash collection from IP land handovers at the Nam Son Hap Linh (NSHL) IP as well as reduced receivables from prepayment to suppliers and (2) our lower WACC assumption. These positive effects are partially offset by a lower valuation for the NSHL IP as ~36% (62 ha) of this IP’s remaining leasable land bank was handed over in Q2 2023. 

- We broadly maintain our 2023F NPAT-MI at VND2.2tn (USD92mn; +43% YoY) as we continue to expect strong IP land sales handovers and ASP to drive KBC’s full-year earnings growth. 

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