- We raise our target price (TP) for KBC by 2.6% to VND42,700/share but downgrade our rating to OUTPERFORM from BUY as KBC’s share price has increased 20% in the last three months.

- Our higher TP is mainly thanks to (1) our incorporation of new IP projects in Long An Province with a total site area of 1,365 ha, which is partially offset by (2) our 0.5-ppt increase in our risk-free rate assumption and (3) rescheduling our bulk sales assumption for the Trang Cat urban area (UA) to start in 2023F vs previously 2022F.

- Due to our delayed bulk sales recognition for the Trang Cat UA, we cut our 2022F NPAT-MI forecast by 16%. Meanwhile, we edge up our aggregate 2023-2025F NPAT-MI forecasts by 1.6% as we assume new IP projects in Long An Province will start IP land sales recognition in 2024F.

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