- We reiterate our BUY rating for VRE and increase our target price by 1.3% to VND40,500/share. Our higher target price is mainly due to (1) the positive impact of rolling our target price horizon to mid-2024F and (2) our higher 2023-2027F gross margin forecast for the retail leasing segment as a result of cost optimization following Q1 2023 results, which offset (3) our more conservative projection for new mall launches in 2024F.
- We forecast 2023F NPAT-MI of VND4.0tn (USD171mn; +45% YoY), which is driven by (1) the ongoing recovery of tenant businesses, (2) not offering COVID-19 support packages, (3) full-year contributions from new malls opened in H1 2022, and (4) higher YoY property sales recognition. This is 6% higher than our previous forecast as increase our 2023F gross margin projection for the retail leasing segment to 57.7% from 54.6% vs 53.4% in 2022 thanks to cost-saving initiatives.