VIC [OUTPERFORM +11.6%] - Robust property segment, accelerated EV sales - Update
  • 2024-03-12T00:00:00
  • Company Research

- We reiterate our OUTPERFORM rating for VIC with an unchanged target price of VND49,500/share.

- For 2024F, we forecast VIC’s PBT of VND11.3tn (USD464mn; -18% YoY), mainly driven by strong property sales and resilient retail leasing segments, plus the Chairman’s grants to VinFast (Nasdaq: VFS). We expect 2024F improvement in homebuyer confidence and overall consumer spending to support VIC’s real estate arms VHM, VRE, and Vinpearl. We forecast VIC’s 2024F NPAT-MI of VND2.4tn (USD98mn; +16% YoY).

- VIC has rapidly diversified from its real estate ecosystem into EV manufacturing with VinFast, which requires huge capex and debt refinancing. We project the average capex investment for VinFast in 2024-25F at VND20.9tn (USD860mn) per year which will be mainly funded by our projection for VIC’s average net debt increase (excluding VHM and VRE) at VND35.9tn (USD1.5bn) per year during the same period.

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