- We increase our target price for TLG by 6% to VND63,500/share and upgrade our rating to BUY from OUTPERFORM.

- Our higher target price is due to the positive impact of a 10% increase in our aggregate 2022-2026F NPAT-MI that is mostly because we 1) are more positive on TLG’s gross margin over this period, in addition to 2) lower assumed SG&A expenses as proportion of sales. This positive impact is partially offset as we increase our WACC to 11.3% from previously 11.1%.

- TLG announced robust preliminary 8M 2022 NPAT-MI of VND396bn (USD17.0mn; +137% YoY) as sales recovered from a low base in 2021 due to COVID-19 while margins continued to expand stronger than our expectation, which we stated in our August 23, 2022 Update Report.

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