BVH [MARKET PERFORM -8.8%] - Heavier than expected provisioning drags on earnings - Update
We lower our 12-month target price to VND85,700 from VND92,050 as we book higher math reserve expenses for the remainder of 2018 and adjusted CoE assumptions. This indicates a negative expected total return of 8.8% inclusive of a 1% dividend yield. We therefore maintain our rating of MARKET PERFORM for this stock. H1 2018 PBT declined 26.7% Y-o-Y due to higher than expected math reserve provisioning despite net premium growth of 25% for the period.