- We cut our target price (TP) for VTP by 46% to VND33,900/share but reiterate our OUTPERFORM rating as the company’s share price has dropped 48% over the last three months.  

- Our lower TP is mainly due to (1) increasing our WACC by 90 bps to 12.0%, (2) a 56% cut in our target P/E multiple to 11.0x and (3) a 5% decline in our aggregate 2023F-2025F NPAT-MI, which are partly offset by the positive effect of rolling our TP horizon forward to end-2023.

- For 2023F, we project sales revenue of VND26tn (USD993bn; +10% YoY) and NPAT-MI of VND405bn (USD16mn; +12% YoY). We expect the revenue growth to be led by delivery services due to the robust momentum growth of e-commerce, which is partly offset by our expectation for weaker consumption in 2023. We expect bottom-line growth to be more sluggish due to strong competition and thin margins in the e-commerce delivery service. 

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