- We maintain our BUY rating for LHG and increase our target price by 9% to VND36,000/share.

- Our higher target price is primarily driven by reducing our NAV discount from 40% to 30% as we expect LHG’s restricted trading status to be removed in Q2 2023.  However, this is partially offset by our lower valuation for the IP and ready-built factory (RBF) segments as we now expect slower sales progress.

- Following our lower sales assumption due to expected manufacturing headwinds, we cut our 2023F NPAT-MI by 29%. We also reduce our 2024-2026F aggregate NPAT-MI forecast by 23% as we believe LHG’s sales will slow due to a shift toward SMEs from the mostly international logistics tenant mix currently, which is primarily due to (1) a decreasing amount of land suitable for large corporations and (2) SMEs potentially bring more jobs and tax income to Long An Province compared to multinational logistics companies.

Powered by Froala Editor