- We downgrade our rating for PTB from BUY to MARKET PERFORM as we cut our target price by 7% to VND59,700/share mainly because we reduce our 2023F/24F/25F NPAT-MI by 19%/20%/10%, respectively. We expect a slower recovery in demand as well as bad debt provisions and lower sales resulting from the bankruptcy of Noble House Home Furnishing LLC.

- New single-family house construction in the US recovered in 10M 2023 but the recovery was modest. As such, we expect a gradual recovery in Vietnam’s furniture exports during October 2023-April 2024, continuing the trend from June-October 2023.

- We forecast 2024F furniture revenue to hit 90% of 2022’s level. Meanwhile, we project 2024F stone revenue to grow 11% vs 2022’s level as PTB gains sharein the US quartz market.

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