VEAM Corp (VEA) [BUY +22.

9%] Update Report

Industry: Automobiles 2022 2023F 2024F 2025F
20% VEA VNI
Report Date: February 15, 2023 Revenue YoY 18.1% -7.0% 7.0% 7.0%
Current Price: VND38,900 EPS YoY 32.7% -9.4% 11.7% 11.0% 0%
Target Price: VND43,300 Associate* YoY 34.9% -9.8% 13.4% 12.1%
Previous Target Price: VND42,400 P/E 6.9x 7.6x 6.8x 6.1x -20%
Upside to TP: +11.3% Dividend yield 10.8% 14.8% 13.4% 15.0%
Dividend Yield: +11.6% P/pre-fin. CF 8.6x 6.4x 7.4x 6.6x -40%
Feb-22 Jun-22 Oct-22 Feb-23
TSR: +22.9% P/B 2.0x 1.9x 1.9x 1.8x

Market Cap: USD2.1bn VEA Peers** VNI Company Overview

Foreign Room: USD1.0mn P/E (ttm) 6.9x 9.3x 13.6x VEAM Corp mainly produces agricultural
ADTV30D: USD176,000 P/B (curr) 2.0x 1.3x 1.7x machinery. However, most of its profits are derived
from its associate stakes in leading motorbike and
State Ownership: 88% Net D/E 0.5x 0.1x N/A car producers in Vietnam, including Honda
Outstanding Shares: 1,328.8 mn ROE 31.4% 9.4% 14.1% Vietnam, Toyota Vietnam and Ford Vietnam.
Fully Diluted Shares: 1,328.8 mn ROA 29.2% 3.7% 2.2%
*Associate profits; **median of 4W and 2W foreign peers

Han Mai Earnings to decline in 2023 on weak vehicle sales

Analyst
[email protected]
+84 28 3914 3588 ext. 538
• We maintain our BUY rating for VEA as we remain positive about the company’s large exposure
to Vietnam’s extensive motorbike (2W) market and the long-term growth of the country’s auto
Nam Hoang (4W) consumption along with its robust dividend yields.
Senior Manager
[email protected] • We edge up our target price (TP) by 2% as we increase our aggregate 2023F-2025F NPAT-MI
+848 3914 3588 ext. 124 forecast by 2% mainly due to our higher projected profit for VEA’s associates in 2023.
• We expect passenger car (PC) and 2W industry sales to achieve respective CAGRs of 20% and
7% in 2023F-2025F as we believe a rebound of consumer spending in 2024-2025 will support the
robust medium-term outlook of Vietnam’s auto industry.
• Our TP puts VEA’s 2023F P/E at 8.4x vs the five-year average peer TTM P/E of 11.3x. VEA’s
FY2022 dividend yield (to be paid in 2023) looks attractive at 11%.
• Downside risks: Intensifying competition in 4W market; weaker-than-expected consumer
confidence.
We maintain our view that economic headwinds will weigh on the short-term growth of VEA
and its associates. Based on the data from the Vietnam Automobile Manufacturer’s Association
(VAMA) and Hyundai Thanh Cong, we estimate that Vietnam’s passenger car sales declined 2%
YoY in Q4 2022 despite Q4 typically being the peak season for car purchases with strong discounts
and promotional activities from several car brands. Hence, we maintain our view on weak vehicle
consumption in 2023 due to economic headwinds that have deteriorated the disposable income and
savings of mass consumers while also hurting the confidence of middle-affluent class. We expect a
5% YoY decline in PC sales volume at the industry level in 2023 from a relatively high base in 2022,
in addition to flat 1% YoY growth for the 2W industry (vs -3% YoY previously) as 2W demand was
resilient in Q4 2022 and 2022 sales results exceeded our forecast by 3%. We assume discretionary
spending will start to recover 2024 and that there will be more vibrant spending in 2025.
We expect Toyota and Ford to expand their market shares due to competitive new models
but Honda’s 4W sales to underperform; Honda’s 2W dominance to continue. We project
Toyota, Honda and Ford’s 4W sales in Vietnam to decline 4% YoY, 6% YoY and 1% YoY in 2023,
respectively. We expect Toyota and Ford’s market shares will continue to be bolstered by their
flagship models that have competitive price/feature profiles such as Toyota’s small SUV Corolla
Cross and MPV Veloz and Ford’s Ranger pick-up truck and Territory MPV. Meanwhile, we project
Honda 4W to underperform due to its limited product portfolio as well as fewer active upgrades and
new launches. We project Honda’s 2W market share will continue to dominate the Vietnamese
market and expand from 80% in 2023F to 81% in 2025F, which is based on its diverse product
portfolio and strong brand.

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> February 15, 2023 | 1
 2022 Recap: Strong vehicle sales elevate earnings growth
Figure 1: VEA’s Q4 2022 and 2022 results, including VCSC’s estimates of associate profits HOLD
2022/
Q4
VND bn YoY 2022A YoY VCSC’s VCSC comments on 2022A
2022
Old 2022F
Mainly driven by the agricultural machinery, foundry
Revenue 1,267 7% 4,748 18% 103%
and automobile part businesses.
Mainly driven by 34% YoY higher SG&A costs,
EBIT -88 N.M. -9 N.M. -8% including VND96bn of provision expenses (+14x
YoY).
Associate profits 2,369 39% 6,984 35% 109%
We attribute the strong profitability to improved
motorbike sales and margins due to (1) eased supply
Honda 2,050 52% 5,975 37% 110%
shortages alleviating input costs and (2) higher
average selling prices in 2022.
Mainly dragged by a 43% decline in Q4 2022 profit
Toyota 160 -43% 735 2% 92% that we partly attribute to strong promotions and
discounts with the early arrival of the Lunar New Year.
Strong profitability backed by new launches/updates
Ford + Others 159 103% 275 3.5x 171%
of products.
Other non-
296 91% 876 27% 111% Thanks to higher bank deposit rates.
operating profits
PBT 2,577 34% 7,852 32% 108%
NPAT-MI 2,512 34% 7,602 32% 108%
Sell-out performance
Honda 2W (‘000 Honda’s market share to expand 30 bps to 80.2% in
715 15% 2,408 21% 103%
units) 2022 vs 79.9% in 2021.
Weak results due to heightened competition with
other lower-price brands in the market, including the
Honda 4W 5,502 -28% 30,645 41% 91%
launch of updated flagship models Hyundai Tucson
and Kia Sportage.
Thanks to strong growth of new models such as
compact SUV Raize (CBU, 9x YoY), and MPV Veloz
Toyota 27,221 -10% 92,625 34% 102%
(CBU, launched in April 2022 — 15% of total Toyota
sales in 2022).
Strong results in 2022 across models, led by Transit
Ford 13,329 51% 28,847 22% 135% (minibus, CKD, +170% YoY), and the launch of Ford
Territory (MPV, CKD, 7% of Ford’s sales in 2022).
Source: VEA, VAMA, Vietnam Association of Motorcycle Manufacturers (VAMM), VCSC estimates
CBU (complete built-up): imported cars; CKD (complete knock-down): locally assembled cars; for other
definitions, please see glossary on page 7.

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> February 15, 2023 | 2
 2023F: Weak auto demand to put pressure on earnings
Figure 2: VCSC’s 2023 forecasts HOLD
Old New
VND bn 2022 YoY VCSC comments on new 2023F
2023F 2023F
Revenue 4,748 4,298 4,415 -7%
Operating profits -9 69 12 -237%
We project PC and 2W industry sales to decrease 5% YoY and
grow 1% YoY in 2023F, respectively, which is due to the outlook
for a global economic slowdown that will result in expected weaker
discretionary spending from consumers — even those in the
middle affluent class. This should negatively impact the profit
growth of VEA’s associates.
We expect consumers to trade down because of economic
Associate profits 6,984 5,976 6,297 -10%
headwinds, which partly shift sales to segment B models due to
their affordability, including Toyota Vios and Honda City.
Meanwhile, we project SUVs continue to acquire market share
from sedans due to consumer preferences, and we believe
compact and affordable SUVs/MPVs will outpace large
SUVs/MPVs in 2023 as we believe consumers will be more price
sensitive.

Honda 5,975 5,037 5,303 -11%

Toyota 735 785 704 -4%

Partly bolstered by higher profit contribution from newly
updated/launched CKD models Territory and Ranger. We note
Ford 275 154 282 5% that CKD cars typically generate higher profit margins compared
to CBUs.

Other non-
876 980 844 -4%
operating items
PBT 7,852 7,025 7,152 -9%
NPAT-MI 7,602 6,766 6,918 -9%

Sell-out performance (units)

We expect 2W demand to be negatively impacted by the
deteriorating disposal income of mainstream consumers.
Honda 2W (‘000) 2,408 2,282 2,441 1% Meanwhile, Honda’s market share is expected to remain
dominant at 80% in 2023F as a result of its diverse product
portfolio and strong brand equity.
Due to industry weakness and market share loss as we see fierce
Honda 4W 30,645 29,599 28,837 -6%
competition with other brands such as Toyota, Kia, or Hyundai.
Due to industry weakness. However, we expect Toyota will
continue to gain market share in 2023F due to its attractive
Toyota 92,625 87,905 88,907 -4%
price/feature profiles such as Corolla Cross (compact SUV, CBU)
and Raize (sub-compact SUV, CBU).
Due to industry weakness. However, we expect Ford to gain
market share in 2023F due to its focus on reconfiguring models
that are strong design-wise and price competitive, such as
Ford 28,847 19,421 28,569 -1%
Everest/Explorer (SUV, CBU, +13% YoY) and Territory (MPV,
CKD), in addition to its solid position in the pick-up truck segment
with the flagship Ranger (CKD).
Source: VCSC. Note: For definitions, please see glossary on page 7.

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> February 15, 2023 | 3
 Figure 3: Vietnam’s 4W industry sales in 2022 and January 2023
Units 2022 YoY January 2023 YoY
Total auto sales
By segment
486,165 30% 20,810 HOLD
-45%

Passenger cars 386,783 41% 17,220 -46%

Commercial and special purpose
99,382 -2% 3,590 -43%
vehicles
By origin
CKD 219,047 26% 11,582 -54%
CBU 185,592 36% 9,228 -29%
Source: VAMA, Hyundai Thanh Cong, VCSC; excluding Mercedes and VinFast; VinFast’s sales volume could
include pre-orders, whereas the other auto producers report completed retail sales.

Figure 4: Monthly PC sales volume in 2018-2023 (‘000 units)

60 2019 2020 2021 2022 2023

50

40

30

20

10

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: VAMA, Hyundai Thanh Cong; excluding Mercedes and VinFast; VinFast’s sales volume could include
pre-orders, whereas the other auto producers report completed retail sales.

Figure 5: PC sales volume and growth of major producers

Units 2020 YoY 2021 YoY 2022 YoY 2023F YoY
Toyota 69,439 -10% 64,395 -7% 92,577 44% 88,875 -4%
Honda 24,418 -26% 21,698 -11% 30,645 41% 28,837 -6%
Ford 10,153 -28% 7,160 -29% 9,977 39% 11,585 16%
Thaco 74,486 15% 78,284 5% 105,613 35% 100,961 -4%
Hyundai 73,479 5% 60,731 -17% 81,582 34% 70,543 -14%
Mitsubishi 26,707 -5% 23,560 -12% 35,281 50% 32,371 -8%
Total PC
294,753 -4% 275,115 -7% 386,783 41% 367,444 -5%
industry*
VinFast** 31,500 105% 35,723 21%
Source: VAMA, Hyundai Thanh Cong, VinFast, VCSC; excluding Mercedes; *excluding VinFast; **VinFast’s
sales volume could include pre-orders, whereas the other auto producers report completed retail sales.

Figure 6: PC market share by producer

2018 2019 2020 2021 2022 2023F
Toyota 26.2% 25.2% 23.6% 23.4% 23.9% 24.2%
Honda 11.0% 10.8% 8.3% 7.9% 7.9% 7.8%
Ford 4.1% 4.6% 3.4% 2.6% 2.6% 3.2%
Thaco 26.0% 21.0% 25.3% 28.5% 27.3% 27.5%
Hyundai 22.7% 22.8% 24.9% 22.1% 21.1% 19.2%
Mitsubishi 3.3% 9.1% 9.1% 8.6% 9.1% 8.8%
Others 6.6% 6.5% 5.3% 7.0% 8.0% 9.3%
Source: VAMA, Hyundai Thanh Cong, VCSC; excluding Mercedes and VinFast.

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 Figure 7: Honda’s monthly 2W sales volume (units)
300,000
-16% YoY in January 2023
+21% YoY in 2022
HOLD
250,000

200,000

150,000

100,000

50,000
2019 2020 2021 2022 2023
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: Honda Vietnam, VCSC

Valuation
In this Update Report, we increase our TP by 2% as we nudge up our aggregate 2023F-2025F
NPAT-MI forecast by 3% mainly due to our upward revision for profit from VEA’s associates in 2023.
We maintain our dividend discounted model (DDM) valuation approach for VEA as we believe it
suits VEA’s stable dividend policy (i.e., almost a 100% payout based on annual earnings at the
parent company’s level). We also maintain a discount on our estimated equity value of 25% as a
result of (1) VEA’s lack of control over its automobile affiliates and limited information disclosures
regarding these companies as well as (2) the risk of value erosion by VEA’s core businesses, which
face stiff competition from Chinese products and lack competitive advantages.
Figure 8: VCSC’s valuation for VEA
Cost of equity Current Previous DDM (five years) VND bn
Beta 1.0 1.0 PV of dividends 24,515
Market risk premium % 8.0% 8.0% PV of terminal value (5% g) 52,158
Risk free rate % 6.0% 6.0% Equity value 76,673
Cost of equity % 14.0% 14.0% Shares (million) 1,329
Equity value per share (VND) 57,701
Valuation discount 25.0%
Target Price (VND) 43,300
Implied target 2023F/2024F P/E 8.4x/7.5x
Source: VCSC

Figure 9: Dividend projections for VEA

2023F 2024F 2025F 2026F 2027F
NPAT-MI (VND bn) 6,918 7,705 8,550 9,530 10,457
Dividend paid (VND bn) during calendar year 5,565 7,669 6,924 7,750 8,608
Per share (VND) 4,188 5,771 5,211 5,832 6,478
PV of dividends (VND bn) 4,882 5,901 4,674 4,588 4,471
Cumulative PV of dividends (VND bn) 4,882 10,782 15,456 20,044 24,515
Source: VCSC

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> February 15, 2023 | 5
 Figure 10: Sensitivity analysis of our target price for VEA in relation to cost of equity and
terminal growth rate in our DDM valuation, ceteris paribus
Target price (VND)
12.0% 13.0%
Cost of equity
14.0% 15.0%
HOLD
16.0%
3.0% 46,100 41,400 37,500 34,200 31,500
4.0% 50,400 44,700 40,100 36,300 33,200
Terminal growth (g) 5.0% 55,900 48,800 43,300 38,900 35,200
6.0% 63,300 54,100 47,300 41,900 37,700
7.0% 73,600 61,200 52,400 45,800 40,700
Source: VCSC

Figure 11: Comparable peers for VEA — emerging Asian 4W

TTM TTM
Market cap TTM FY2022F FY2022F
Company Country sales NPAT ROE Net D/E
(USD mn) P/E (x) P/E (x) div yield
growth growth
Emerging Asian 4W
SAIC MOTOR-A China 25,470 -5% -30% 6% 7% 10.3 8.9 4.0%
HYUNDAI MOTOR South Korea 28,675 21% 49% 6% 93% 5.6 5.3 4.1%
KIA MOTORS South Korea 23,206 24% 14% 13% -24% 6.4 4.7 4.9%
TATA MOTORS India 19,079 11% 78% N/A 190% N/A N/A 0.0%
MAHINDRA & MAHIN India 20,339 27% N/A 15% 98% 22.9 16.9 1.0%
YULON MOTOR Taiwan 2,563 -7% N/A -1% 278% N/A N/A 0.6%
DRB-HICOM Malaysia 776 N/A 0% 6% 40% 8.3 12.1 0.9%
CHINA MOTOR Taiwan 1,031 -14% N/A -10% -26% N/A N/A N/A
Median 19,709 11% 14% 6% 67% 8.3 8.9 1.0%
Mean 15,142 8% 22% 5% 82% 7.7 9.6 2.2%
Source: Bloomberg, VCSC (data as of February 15, 2023)

Figure 12: Comparable peers for VEA — Asian 2W

TTM TTM
Market cap TTM FY2022F FY2022F
Company Country sales NPAT ROE Net D/E
(USD mn) P/E (x) P/E (x) div yield
growth growth
Asian 2W
HERO MOTOCORP India 6,190 -3% -21% 15% -35% 22.1 17.7 4.0%
BAJAJ AUTO India 13,588 18% 27% 22% -20% 18.2 19.2 3.9%
YAMAHA MOTOR Japan 8,917 24% 12% 19% 30% 6.6 7.1 3.8%
LONCIN MOTOR China 1,661 5% -33% 6% -11% 24.2 N/A N/A
ATLAS HONDA Pakistan 134 17% 3% 26% -123% 6.7 N/A N/A
Median 6,190 17% 3% 19% -20% 18.2 17.7 3.9%
Mean 6,098 12% -2% 17% -32% 15.6 14.7 3.9%
Source: Bloomberg, VCSC (data as of February 15, 2023)

Figure 13: VEA’s TTM P/E vs peers (x)

20.0

15.0

10.0

5.0

Asian 2W Emerging Asian 4W VEA

0.0
Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23
Source: Bloomberg, VCSC
See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> February 15, 2023 | 6
 Recommendation History
Figure 14: Recommendation history; share prices (VND/share) adjusted for share splits HOLD
80,000

70,000

60,000 BUY BUY BUY

BUY
45,900 BUY BUY 53,900 54,000 BUY BUY
51,300 BUY
48,500 49,000 50,700 42,400
O-PF 49,100
50,000 O-PF BUY
43,600
43,600 BUY 43,300
50,100
40,000

30,000

20,000

10,000
Market price Target price

0
Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Jan-23

Source: Bloomberg, VCSC

Glossary
Abbreviation Full name or description
VAMA Vietnam Automobile Manufacturers’ Association
VAMM Vietnam Association of Motorcycle Manufacturers
2W Two-wheeler (motorbikes)
4W Four-wheeler (including passenger cars and commercial vehicles)
CBU Complete built-up (imported cars)
CKD Complete knock-down (locally assembled cars)
Passenger car, including sedan, hatchback, multi-purpose vehicle and sport utility
PC
vehicle
CV Commercial vehicle, including minibus, pick-up truck and cargo truck
Mini cars in the EU passenger car classification or mini-compact cars in the US car
Segment A
classification
Small cars in the EU passenger car classification or subcompact cars in the US car
Segment B
classification
Medium cars in the EU passenger car classification or compact cars in the US car
Segment C
classification
Large car in the EU passenger car classification or mid-size cars in the US car
Segment D
classification
SUV Sport utility vehicle
MPV Multi-purpose vehicle

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> February 15, 2023 | 7
 Financial Statements
P&L (VND bn)
Revenue
2022
4,748
2023F
4,415
2024F
4,724
2025F
5,055
B/S (VND bn)
Cash & cash equivalents
2022
294
2023F
273
HOLD
2024F
2025F
292 313
COGS -4,096 -3,810 -4,076 -4,362 ST investment 12,593 15,026 14,420 15,394
Gross Profit 651 606 648 693 Accounts receivable 3,636 3,182 3,263 3,422
Sales & Marketing exp. -105 -100 -102 -102 Inventories 1,541 1,560 1,647 1,726
General & Admin exp. -555 -494 -519 -526 Other current assets 146 391 355 258
Operating Profit (EBIT) -9 12 27 66 Total Current assets 18,209 20,432 19,977 21,113
Financial income 818 811 727 673 Fixed assets, gross 5,524 5,655 5,786 5,916
Financial expenses -23 -49 -44 -42 - Depreciation -3,792 -4,086 -4,387 -4,695
- o/w interest expense -14 -49 -44 -42 Fixed assets, net 1,732 1,569 1,398 1,221
Associates 6,984 6,297 7,143 8,006 LT investments 6,893 6,205 7,052 7,915
Net other income/(loss) 81 81 81 81 LT assets other 621 621 621 621
Profit before Tax 7,852 7,152 7,934 8,785 Total LT assets 9,246 8,395 9,072 9,757
Income Tax -180 -171 -158 -156 Total Assets 27,455 28,827 29,048 30,870
NPAT before MI 7,672 6,981 7,776 8,629
Minority Interest -70 -64 -71 -79 Accounts payable 394 439 477 533
NPAT less MI, reported 7,602 6,918 7,705 8,550 Short-term debt 1,014 943 1,009 1,080
NPAT less MI, adjusted (1) 7,602 6,918 7,705 8,550 Other ST liabilities 761 761 761 761
Total current liabilities 2,169 2,143 2,248 2,374
EBITDA 8,125 7,398 8,192 9,051 Long-term debt 0 0 0 0
EPS basic reported, VND 5,671 5,137 5,737 6,365 Other LT liabilities 56 56 56 56
EPS basic adjusted (1), VND 5,671 5,137 5,737 6,365 Total Liabilities 2,225 2,199 2,304 2,430
EPS fully diluted, VND 5,671 5,137 5,737 6,365
DPS, VND 4,188 5,771 5,211 5,832 Preferred Equity 0 0 0 0
DPS/EPS (%) 74% 112% 91% 92% Paid-in capital 13,288 13,288 13,288 13,288
(1) Adjusted for one-offs Share premium 0 0 0 0
RATIOS 2022 2023F 2024F 2025F Retained earnings 11,713 13,040 13,086 14,702
Growth Other equity -7 0 0 0
Revenue growth 18.1% -7.0% 7.0% 7.0% Minority interest 236 300 371 449
Associate profits growth 34.9% -9.8% 13.4% 12.1% Total equity 25,230 26,628 26,745 28,440
PBT growth 32.2% -8.9% 10.9% 10.7% Liabilities & equity 27,455 28,827 29,048 30,870
EPS growth 32.7% -9.4% 11.7% 11.0%
Y/E shares out, mn 1,329 1,329 1,329 1,329
Profitability Y/E treasury shares, mn 0 0 0 0
Gross Profit Margin 13.7% 13.7% 13.7% 13.7% CASH FLOW (VND bn) 2022 2023F 2024F 2025F
Op Profit, (EBIT) Margin -0.2% 0.3% 0.6% 1.3% Beginning Cash Balance 280 294 273 292
EBITDA Margin 171.1% 167.5% 173.4% 179.1% Net Income 7,602 6,918 7,705 8,550
NPAT-MI Margin 160.1% 156.7% 163.1% 169.1% Dep. & amortization 287 294 301 308
ROE 31.4% 27.0% 29.2% 31.5% Change in Working Capital 38 234 -93 -86
ROA 29.2% 24.8% 26.9% 28.8% Other adjustments -7,036 -6,244 -7,057 -7,931
Cash from Operations 101 1,201 856 842
Efficiency
Days Inventory on Hand 134 149 144 141 Capital Expenditures, net -130 -130 -130 -130
Days Accts. Receivable 278 282 249 241 Investments, net 5,273 4,544 6,896 6,163
Days Accts. Payable 32 40 40 42 Cash from Investments 5,143 4,414 6,765 6,033
Cash Conversion Days 381 391 352 341
Dividends Paid -5,997 -5,565 -7,669 -6,924
Liquidity ∆ in Share Capital 0 0 0 0
Current Ratio 8.4 9.5 8.9 8.9 ∆ in LT debt 0 0 0 0
Quick Ratio 7.6 8.6 8.0 8.1 ∆ in ST debt 767 -71 66 71
Cash Ratio 5.9 7.1 6.5 6.6 Other financing cash flows -0 0 0 0
Debt / Assets 0.0 0.0 0.0 0.0 Cash from Financing -5,230 -5,636 -7,602 -6,854
Debt / Capital 0.0 0.0 0.0 0.0
Net Debt / Equity -0.5 -0.5 -0.5 -0.5 Net Change in Cash 14 -21 19 20
Interest Coverage N.M. N.M. N.M. N.M. Ending Cash Balance 294 273 292 313
Source: VEA, VCSC

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 VCSC Rating System
HOLD
Stock ratings are set based on projected total shareholder return (TSR), defined as (target price – current price)/current
price + dividend yield, and are not related to market performance.

Equity rating key Definition

BUY If the projected TSR is 20% or higher
OUTPERFORM If the projected TSR is between 10% and 20%
MARKET PERFORM If the projected TSR is between -10% and 10%
UNDERPERFORM If the projected TSR is between -10% and -20%
SELL If the projected TSR is -20% or lower
The company is or may be covered by the Research Department but no rating or
target price is assigned either voluntarily or to comply with applicable regulation
NOT RATED
and/or firm policies in certain circumstances, including when VCSC is acting in an
advisory capacity in a merger or strategic transaction involving the company.
A rating may be suspended, or coverage terminated, if fundamental information is
RATING SUSPENDED, deemed insufficient to determine a target price or investment rating or due to a
COVERAGE TERMINATED reallocation of research resources. Any previous investment rating and target price
are no longer in effect.

Unless otherwise specified, these performance parameters are set with a 12-month horizon. Movement in share prices may
cause a temporary mismatch between the latest published rating and projected TSR for a stock based on its market price
and the latest published target price.

Target prices are generally based on the analyst's assessment of the stock's fair value over a 12-month horizon. However,
the target price may differ from the analyst's fair value if the analyst believes that the market will not price the stock in line
with assessed fair value over the specified time horizon.

Risks: Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely
affect the value, price or income of any security or related instrument mentioned in this report. For investment advice, trad e
execution or other enquiries, clients should contact their local sales representative.

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 Disclaimer
Analyst Certification of Independence
HOLD
We, Han Mai and Nam Hoang, hereby certify that the views expressed in this report accurately reflect our personal views about the subject
securities or issuers. We also certify that no part of our compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or views expressed in this report. The equity research analysts responsible for the preparation of this report receive
compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm
revenues, which include revenues from, among other business units, Institutional Equities and Investment Banking.

VCSC and its officers, directors and employees may have positions in any securities mentioned in this document (or in any related investment)
and may from time to time add to or dispose of any such securities (or investment).VCSC may have, within the last three years, served as
manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities
mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in
relation to the investment concerned or a related investment.

Copyright 2023 Viet Capital Securities Company "VCSC". All rights reserved. This report has been prepared on the basis of information
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