PVT [BUY +23.6%] - Strong Q1 lays foundation for robust NPAT-MI growth in 2024 - Update

- We raise our target price (TP) for PVT by 6% to VND30,100/share and reiterate our BUY rating. Our higher TP reflects (1) a 3.3% increase in our aggregate 2024-2028F reported NPAT-MI forecast (0.9%/4.9%/3.5%/3.5%/3.5% in 2024/25/26/27/28F, respectively), and (2) a positive impact of rolling our TP horizon to mid-2025F. 

- Our higher aggregate reported NPAT-MI is due to 1) raising gross profit projection for the LPG transport segment in 2024-2025 following the fixed two-year time charter contract for two VLGCs (Very Large Gas Carrier) since Q3 2023. This outweighs our lower gross profit projection for the oil product segment, assuming PVT’s oil product tanker rate will normalize from a high base and decrease 5% YoY in 2025 (down 5 ppts from our old forecast, details on page 12).

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