- We maintain our BUY rating for VEA as we remain positive about the company’s large exposure to Vietnam’s extensive motorbike (2W) market and the long-term growth of the country’s auto (4W) consumption along with its robust dividend yields.

- We edge up our target price (TP) by 2% as we increase our aggregate 2023F-2025F NPAT-MI forecast by 2% mainly due to our higher projected profit for VEA’s associates in 2023.

- We expect passenger car (PC) and 2W industry sales to achieve respective CAGRs of 20% and 7% in 2023F-2025F as we believe a rebound of consumer spending in 2024-2025 will support the robust medium-term outlook of Vietnam’s auto industry. 

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