VEA [BUY +25.3%] - COVID-19 resurgence to curb motorcycle sales recovery - Update
  • 2021-05-27T13:13:57
  • Company Research
We reiterate BUY on VEA as the company provides strong exposure to Vietnam’s extensive motorbike (2W) market and the long-term growth potential of Vietnam’s auto (4W) consumption. We increase our target price (TP) by 1% mainly due to a rollover to mid-2022 and a 50-bp cut to our house cost of equity to 12.5%. These adjustments are partly offset by a 3% cut to our aggregate 2021F-2023F NPAT-MI due to the recent COVID-19 resurgence in late April 2021 — which could undermine motorcycle sales