• VEA announced Q4/2022 financial results that are quite close to our estimation: Net profit increased strongly by 33.8% YoY to VNĐ 2,512 billion – a record quarterly profit. For the whole year of 2022, VEA’s net revenue and net profit reached VNĐ 4,748 billion (+18.1% YoY) and VNĐ 7,602 billion (+32.2% yoy) respectively.
• Car and motorbike output exceeded our forecast. VEA’s profit from joint ventures in Q4/2022 increased sharply by 38.6% YoY, reaching VNĐ 2,369 billion. This good result was achieved by a strong recovery in car and motorcycle consumption.
• Automobile sale: Total sales from 3 joint ventures of VEA (Toyota, Honda and Ford) in Q4/2022 reached 45,908 vehicles, equivalent to the same period.
• Motorcycle sale: Honda’s motorcycle sales in Q4 reached 715,118 units, up 14.6% YoY thanks to improved supply and customer demand. We recommend Buy for VEA stock. Our target price is VNĐ57,300/share.