- We increase our target price (TP) for VEA by 4% and maintain our BUY rating. We remain positive about VEA’s large exposure to Vietnam’s extensive motorbike (2W) market, the long-term growth of the country’s auto (4W) consumption, and VEA’s robust dividend yields.

- We nudge up our aggregate 2023-25F NPAT-MI forecasts by 4% (respective increases of 4%/5%/2% for 2023F/24F/25F NPAT-MI) mainly due to our higher associate profit projections for Honda and Ford.  

- We maintain our forecasts for passenger car (PC) and 2W industry sales to achieve respective CAGRs of 18% and 6% in 2023F-27F as we believe a rebound in consumer spending in 2024-2025 will support the robust long-term outlook of Vietnam’s auto and motorbike industry. 

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