- We maintain our BUY rating for SIP but lower our target price by 7% to VND83,000/share from the previous one of VND89,000/share (adjusted for bonus share issuance and stock dividend in September 2023). 

- Our lower target price is mainly driven by a lower 2023-2025F IP land sales projection as we have observed a slower-than-expected sales at SIP’s IPs. This is partially offset by rolling forward our target price horizon to end-2024 and an increased valuation for SIP’s investment in associates.

- We cut our 2023F NPAT-MI forecast by 14% to VND817bn (USD34mn; -16% YoY), mainly due to (1) our lower IP GPM assumption given a one-off upward development cost revision in the Loc An – Binh Son IP, and (2) a higher financial expense projection.

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