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BMI [BUY +42.8%] - An attractive pure play on non-life insurance - Initiation

We initiate on BMI with a BUY rating and a target price of VND46,500, which represents total return of 42.8% from today’s closing price including a 3% dividend yield. BMI is undervalued given its growth outlook, 14% 2018F GWP growth, and has additional potential catalysts for re-rating. The company is trading at a 2018F P/E of 11.6x and a P/B of 1.1x, discounts of 27.2% and 19.6% compared to the combined median of regional and local P/E and P/B, respectively.