- We maintain our BUY rating for BMP while cutting our target price 8% due to increasing our WACC assumption to 13.1% from 12.2% as we raise our ERP assumption by 1 ppt and increase our cost of debt assumption by 50 bps. This is partially offset by rolling our target price horizon to end-2023. Meanwhile, we keep our 2023-2027F aggregate NPAT-MI unchanged. 

- We increase our 2022F NPAT-MI forecast by 4% to VND567bn (USD22.9mn; +165% YoY) mainly because we raise our 2022F gross margin assumption due to a continuing correction of input plastic prices for the remainder of 2022. This more than offsets trimming our 2022F sales assumption as we expect weaker demand for construction materials in Q4 2022.

- We forecast 2023F NPAT-MI of VND575bn (USD23.2mn; +1% YoY), which is driven by modest forecast revenue growth of 2% YoY and lower gross margin YoY as we are conservative on a further reduction of input plastic resin prices from the low base in 2022. 

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