- We reiterate our BUY rating for VRE with a target price of VND40,000/share. We maintain our target price as a higher net cash balance as of end-Q2 2022 offsets our lower projected occupancy rates for VCP and VC+ malls as well as our 0.5-ppt higher risk-free rate assumption.

- VRE’s retail leasing segment continued to recover QoQ in Q2 2022, reaffirming our view for 2022F. We keep our 2022F NPAT-MI forecast at VND2.4tn (USD105mn; +84% YoY) as we continue to expect a significantly lower support package YoY from VRE and an ongoing recovery of tenant businesses to support strong profit growth in H2 2022F.

- VRE launched VMM Smart City in April 2022 and two VCP malls in June 2022 with secured occupancy rates of 98%-99%. We expect that VRE will add 1.28 million sqm of new retail leasing GFA in 2023-2026F, which will raise its total retail leasing GFA to 3.03 million sqm by end-2026F (vs 3.17 million sqm in our previous projection) from 1.75 million sqm currently.

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