- We raise our target price (TP) for PVT by 3.3% to VND24,700/share and maintain our BUY rating. Our increased TP is mainly due to our 1% higher aggregate 2023-2027F NPAT-MI that comes from our 5% higher tanker rate renewal assumption for BSR’s transport contracts following PVT’s guidance, in addition to the positive impact of rolling our TP horizon forward to mid-2024.

- We forecast 2023F recurring NPAT-MI growth of 23.7% YoY, which will be mainly contributed by the oil product/chemical segment as we believe PVT’s renewal of contracts at higher rates in Q4 2022 & Q1 2023 will help its tanker rates to increase 15% YoY on average in 2023. In addition, PVT recently renewed crude oil transportation contracts BSR. However, we expect a 3.4% YoY decline in 2023F reported NPAT-MI as PVT will not have significant tanker liquidation gains as in 2022.

- We forecast a 2022-2025F recurring EPS CAGR of 20.3% that will be driven by rising demand from overseas crude, oil product & chemical and LPG transportation as well as Nghi Son Refinery’s (NSR) contracts.

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