- We maintain our MARKET PERFORM rating and cut our target price (TP) for VTP by 4% to VND69,000/share.

- Our lower TP is driven by our 4% lower aggregate 2024-2033F NPAT-MI forecast (mainly driven by respective cuts of 2%/3%/4%/4%/4% for 2024/25/26/27/28F). We cut our 2024 earnings projection due to higher-than-expected SG&A expenses in H1 2024 and reduce our 2025-2033 forecasts by cutting our service GPM assumptions to account for outsourcing costs related to land rental fees of a new sorting center in HCMC.

- We project 2024F NPAT-MI to decline 6% YoY due to (1) services GPM contraction YoY (caused by increased depreciation and outsourcing expenses YoY) and (2) a lower trading profit caused by the scaling down of the trading segment.

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