- We raise our TP for PVS by 4% to VND50,400/share & reiterate our BUY rating. The higher TP is due to our 3.5% higher aggregate 2024-2028F NPAT-MI (+7%/+3%/+3%/+3%/+3% in 2024/25/26/27/28F, respectively) and the positive impact of rolling our TP to mid-2025.

- Our higher forecast is mainly due to 5% higher profit from the floating oil storage segment with higher projected aggregate profit from FSO Bien Dong (+53%), FPSO Ruby 2 (+3%), and a significantly lower 2024 financial expense following strong Q1 NPAT of VND301bn (+40% YoY). 

- We forecast 2024F NPAT-MI to grow 18.5% YoY as we expect Mechanical & Construction (M&C) revenue to jump ~70% YoY, fueled by recovery of domestic exploration & production, new offshore wind power, and M&C’s GPM assumption to rise to 3.5% vs 1.6% in 2023.

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