We raise our target price (TP) for VJC by 3% to VND106,000/share and maintain our MARKET PERFORM rating.

We believe VJC will benefit from the aviation industry’s post-COVID recovery. However, we have a conservative view on passenger transportation yield due to the impact of economic headwinds on demand, and we project that VJC’s transportation NPAT-MI will not return to its 2019 level until 2025. As a result, we believe VJC’s current valuation looks fair.

Our higher TP is mainly driven by a 2% increase in our 2023-2027F aggregate EBITDAR forecast that is primarily underpinned by our higher assumptions for VJC’s international passenger volume in the period. In this Update Report, we roll our TP horizon forward to mid-2024 from previously end-2023.