- We maintain our BUY rating for SAB and raise our target price (TP) by 1% to VND71,000/share.

- Our higher TP is driven by a 1% increase in our target P/E from 19.8x to 20.0x. We raise our target P/E as we increase our 2024-2028F aggregate NPAT-MI forecast by 5% (respective changes of 0%/0%/+11%/+6%/+6% in 2024/25/26/27/28F), resulting in a higher projected 2023-2028F NPAT-MI CAGR of 7% from 5% previously, as we assume SAB to totally pass on the higher excise tax to consumers (vs our previous conservative assumption for SAB partially passing on the higher excise tax to consumers).

- We maintain our projection for 2024F NPAT-MI to grow 9% YoY, driven by 7% YoY growth in beer sales volume and lower advertising & promotional (A&P) expenses/beer revenue YoY. We expect 7% YoY volume growth to be driven by the rebounding economy outweighing headwinds, including (1) the prolonged strict enforcement of drunk driving laws and (2) stiff competition.

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