-     We downgrade our rating for VEA to MARKET PERFORM from BUY. The company’s stock has rallied by 31% over the last three months. 

-     We increase our target price by 4% as we roll our target price (TP) horizon forward to mid-2025 vs YE2024 as previously, despite lowering our aggregate 2024F-28F NPAT-MI forecasts by 4% (decreases of 3% in each of our 2024F/25F/26F NPAT-MI projections), driven by a lower associate profit forecast that is partially offset by a higher interest income forecast.

-     We project respective CAGRs of 14%/5% for passenger car and 2W industry sales volume in 2023-28F, as we believe the long-term outlook for growth in automobiles in Vietnam is bright.

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