With residual income (RI) method and P/B comparison method, we update our target price for VCB in the next 12 months at VND94,600, upside potential at 2.96%. VCB maintains the advantage of being the most efficient bank in business, asset quality has improved over the years, and it is constantly making efforts in digital transformation. In 2023, VCB officially announce the take over deal of weak banks at the request from SBV. Meanwhile, additional share issuance to investors is likely to take place in early 2024. In the short term, VCB current price partly reflects the positive business results of 2022 and business plan in 2023. Therefore, we change from a Buy to Hold recommendation in this update report.
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