- We maintain our OUTPERFORM rating for KBC and raise our target price (TP) by 14% to VND32,600/share. 

- Our higher TP is mainly driven by (1) changing our valuation approach for the Trang Due (TD) 3 IP from book value to DCF as we expect the recent committed increase in registered capital of LG Innotek’s project should accelerate the investment approval progress for the TD 3 IP, and (2) reducing our NAV discount to 15% from 20% as we expect fewer challenges for the residential market vs end-2022 given the State Bank of Vietnam’s (SBV) faster and more substantial policy rate cuts so far in 2023.

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