- We maintain our BUY rating for VEA as we continue to like the company’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 cut our target price (TP) by 2% due to lowering our aggregate 2023F-25F NPAT-MI forecast by 3% (respective 1%/3%/6% cuts for 2023/24/25F) following a sharper-than-expected decline of associate profits in Q1 2023. The negative impact is partially offset as we roll our TP horizon forward to mid-2024 from YE2023 as previously.

- We expect 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 industry.

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