- We reiterate our MARKET PERFORM rating despite raising our target price (TP) by 20% as ACV’s share price has increased 18% in the last three months. Our higher TP is due to (1) higher NPAT-MI forecasts for 2024F/2025F/2026F by 13%/18%/10%, respectively, as we expect a stronger recovery in passenger numbers in 2024 and ACV to collect most written-off bad debts in 2025-2027 (vs 2026-2028 previously), coupled with (2) rolling our TP horizon to mid-2025.

- We nudge up our forecast for international passengers in 2024F/25F/26F to 43 million/47 million/51 million, respectively. In which, 2024 reaches 103% vs the pre-COVID level (2019). For domestic passengers, we cut our 2024 forecast to 78 million, but expect a stronger recovery in the medium term.

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