- We maintain our BUY rating as we like VEA’s large exposure to Vietnam’s extensive motorbike (2W) market, the long-term growth of the country’s automobile (4W) consumption, along with its robust dividend yields.

- We cut our target price by 4% as we decrease our aggregate 2024F-25F NPAT-MI forecasts by 8%. This includes a respective decrease of 10%/8%/8% for 2023F/24F/25F NPAT-MI, driven by our lower associate profit projections following lower-than-expected results in Q3 and 9M 2023. This is partially offset by our rollover of valuation from mid-2024 to YE2024.

- We forecast passenger car (PC) and 2W industry sales volume to achieve respective CAGRs of 18% and 6% in 2023F-27F, as we assume a recovery in consumer confidence and spending in 2024-2025, while the long-term outlook for growth in automobiles and motorbikes remains positive. 

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