- We maintain our BUY rating as we like VEA’s broad 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 5% as we lower our aggregate 2024F-28F NPAT-MI forecasts by 5% (our respective decreases of 7%/4%/3% in 2024F/25F/26F NPAT-MI projections), driven by our lower operating profits and interest income forecasts at VEA’s parent level.

- We project respective CAGRs of 15%/6% for passenger car (PC) and 2W industry sales volume in 2023-28F, as we believe in a recovery in consumer confidence and spending in 2024-2025 and a bullish long-term outlook for growth in automobiles in Vietnam. 

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