We reiterate our MARKET PERFORM rating despite revising our TP by +13% due to lower effective tax rate projections, DCF rollover, and a 60 bps reduction in WACC. We expect sales to grow 13% vs FY16 aided by antibiotics, painkillers and vitamin supplements. DHG’s marketing push for vitamin supplements will rein in EBIT growth at 10% in FY17F vs FY16. Ramp-up at new factories will lower tax rates, cushioning NPAT to rise 13% vs FY16.
Vietnam’s leading low cost carrier (LCC) Vietjet will list on HOSE on February 28, 2017. The expected listing reference price on the first trading day is VND90,000 per share, which implies a market cap of USD1.2 billion based on 300 million shares outstanding.
We reiterate our BUY rating despite trimming our TP by 6.8% as we take into account debt at MNS’s holdco level thanks to greater visibility into its financials. FY17F revenue: 13.4% growth, mainly driven by Masan Nutri-Science and Masan Resources. We project EBIT to advance 7.6% in FY17 amid margin contractions at Masan Nutri-Science. We pencil in 20.0% NPAT growth for Techcombank in FY17 on robust loan and fee growth. Increased stakes in subsidiaries further propel MSN’s bottom line
We reiterate our BUY rating for MWG with 36% total return and little change to our forecasts. Aggressive store expansion in DienmayXANH, a projected 8% SSSG and full contributions from stores opened last year will underpin both revenue and NPAT to grow 52% in 2017F. We project an accumulated 436 DienmayXANH stores by YE2017 from 256 at YE2016 as this chain builds on its successful marketing campaign in Q4 2016.
We reiterate BUY with TP revised +6% due to DCF rollover and a 50 bps reduction in WACC. We project 26% FY17 PBT growth for Software Outsourcing on strong Japanese and US revenue. We expect 24% PBT growth for Telecom Services in FY17 on lower fiberization costs. Trading PBT will come off a low FY16 base to grow an estimated 36% despite muted top line. Dirt cheap valuation with three-year PEG of 0.6. Strong cash flows sustain solid dividend yields.
We initiate our coverage on KBC with an OUTPERFORM rating and +11.9% TSR. We expect 32.4% FY17 sales growth on an 89% surge in industrial park land area sold in FY16. Expect 70.5% FY17F EPS growth thanks to strong sales growth and gains from sale of Lotus real estate project. Excluding the real estate sales, FY17F EPS growth will still be 27.1%YoY. Trang Due 3 Industrial park is due to launch at the end of 2017 and will become a long-term growth engine with about a 43%
We reiterate our BUY rating on PNJ with 21.8% total return. We increase our target price by 5.2% primarily due to roll-over effects and a 50 bps contraction in WACC. We pencil in 40 new stores in FY17 vs 31 in FY16. This, coupled with 8% SSSG, will pull high-margin retailing revenue up by an estimated 23.3% vs FY16. FY17 core NPAT is forecast to grow 17.3% against reported growth of 32.4% as PNJ will no longer be burdened by DongA provisioning in 2017.
We maintain our O-PF rating despite revising our TP down 3% due to a lower PER-derived TP. Market share gains will continue fuelling solid domestic volume growth of 13% in FY17F. We project 15% export growth partly aided by expansion into new developing markets. We project a 260 bps contraction in FY17 blended GPM due to the rebound in input milk powder prices despite a projected 3% ASP hike in FY17. We expect selling expenses to ease in FY17 (+7% vs FY16), cushioning 11% NPAT growth.
We reduce our target price for NT2 by 7.4%, but maintain our BUY rating as we lower our terminal growth rate from 4.5% to 2.0% to remove Nhon Trach 3’s impact from our valuation. We believe that NT2’s EPS will only decline 3.6% YoY in 2017 despite a gas price increase of 23.8% YoY and a major maintenance of the power plant. EPS will pick up again in 2018 due to Vietnam’s increasing lack of electricity.
We raise our target price for PVS by 13% and maintain an O-PF rating. We expect 2017 NPAT-MI to drop 17.2% YoY due to margin contraction in Mechanics & Construction (M&C) as well as continued losses in Seismic Survey & Remotely Operated Vehicle (SS & ROV). We forecast NPAT CARG of 12.4% in the period 2017-2021 on a robust upstream project pipeline; kick-off announcements expected in late 2017 should lift share price. Attractive valuation given 2017 P/B of 0.8x, EV/EBITDA of 3.3x