We reiterate our BUY rating for VIC and target price of VND112,000/share.

We remain bullish on Vingroup’s strong exposure to Vietnam’s rising affluent class — especially via its real estate arms Vinhomes (VHM), Vincom Retail (VRE) and Vinpearl. We like the potential of VinFast to become a dominant domestic EV brand as well as a global EV maker over the long run.

For 2022F, we continue to expect strong earnings from property sales and a recovery in retail leasing earnings, which will more than offset EBIT losses for the industrial and hospitality segments. We forecast combined EBIT and financial income of VND31tn (USD1.3bn) in 2022F vs previously VND28tn (USD1.2bn) as higher-than-expected divestment gains in H1 2022 are partly offset by the additional expenses related to ending internal combustion engine (ICE) production vehicle production. We forecast 2022F NPAT-MI of VND9.9tn (USD430mn) — see Figure 2.