- We raise our target price (TP) for VTP by 116% to VND74,600/share but downgrade our rating to UNDERPERFORM from MARKET PERFORM as the share price has rallied 3.7x over the past one year.

- Our higher TP is due to (1) our 22% higher aggregate 2023-32F core NPAT-MI forecast and (2) changes in our valuation methodologies (higher target P/E from 11.0x to 15.0x, revised valuation mix between DCF/P/E methods from 20%/80% to 50%/50%, and removal of the 10% discount to our blended valuation). We also roll our TP horizon forward to end-2024.

- Although we forecast relatively flat reported earnings YoY in 2024, we forecast 2024 core earnings to increase by 29% YoY. We expect the spinning off of the mobile phone card selling business (a thin-margin business) to be offset by higher profits from its core businesses (delivery and logistics services).

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