VRE [BUY +34.8%] - Robust retail leasing profit outlook in medium term - Update

- We reiterate our BUY rating for VRE but trim our target price (TP) by 2% to VND31,200/share. 

- Our lower TP is mainly due to 1) a lower net cash balance at end-Q1 2024 and 2) our lower projection for new mall launches in 2027-2028F, which are partially offset by 3) rolling our TP horizon to mid-2025. We broadly maintain our 2024/25F NPAT-MI forecasts.

- VRE’s valuation looks attractive at a 2024F P/E of 12.5x (based on our forecast) vs the three-month average of the 2024F P/E regional peer median consensus of 18.8x, in addition to our projected 2024-2028F NPAT-MI CAGR of 10% for VRE. We believe VRE, with its dominant position and proven track record, is well positioned to capitalize on the growth of modern retail in Vietnam.

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