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CTD [OUTPERFORM +19.0%] - Construction activity stays strong amid margin slowdown - Update

We maintain our OUTPERFORM rating for CTD with total return of +19.0%. A strong 9M 2017 top line and higher interest income partly offset a slowdown of profit margin from last year’s high base. We retain our +18% 2017F for NPAT-MI (VND1.68 trillion/USD74 million). Solid backlog (+20%-25% Y-o-Y as of end-September) supports our 2018 NPAT-MI growth forecast of 14% to VND1.9 trillion (USD84 million) vs 2017F. Vingroup’s expansion to mid-range housing is a catalyst