- We raise our target price (TP) by 10% and maintain our BUY rating. We remain confident in MWG's ability to capitalize on the rising demand for modern grocery retail from increasingly discerning consumers thanks to its strong capability of fresh assortment. 

- Our higher TP primarily stems from a 38% uplift in our BHX valuation because of a 12% rise in BHX's aggregate net income from 2024-32F, driven by our elevated forecast for new store expansion from 2026F-31F. We also lower BHX’s discount rate by 100 bps to 14% (in line with our cost of equity applied in TGDD & DMX’s valuation) as we are more confident in BHX’s viability of generating long-term profit to MWG after 2024.

- For 2024F-25F, we increase MWG’s aggregate NPAT-MI forecast by 2% as we believe TGDD & DMX will achieve better operational efficiency in these years, following its stronger-than-expected store closures in 2023. We keep our forecasted BHX’s 2024F net loss of VND280bn (-77% YoY) and 2025F net profit of VND238bn.

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