We maintain our MARKET PERFORM rating for CTD despite raising our target price by 16% to VND43,400/share as the company’s share price has increased 31% since end-November 2022.  

Our higher target price is due to 1) increasing our 2023-2027F aggregate NPAT-MI by 23%, which is driven by our lower SG&A expense and higher financial income forecasts, 2) a higher net cash balance at end-2022 and 2) rolling our target price horizon forward to mid-2024. 

CTD reported NPAT-MI of VND19bn (USD0.8mn) in Q4 2022 after two consecutive quarters of losses thanks to improvement in revenue and gross profit margin as the company recognized income from backlog finished in Q4 2022. For full-year 2022, CTD’s NPAT-MI was VND21bn (USD0.9mn; -14% YoY).