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DHG - Tax benefits drive bottom line; muted in-house product sales - Earnings Flash

DHG’s net revenue and NPAT grew 7% and 17%, respectively, in H1 2017 vs H1 2016. The bottom line was mainly propelled by greater tax savings, as our concern over DHG’s softening in-house product sales growth, which reached a mere 3% in Q2 2017 vs Q2 2016 after going flat in Q1 2017, has not been consoled. As such, we will likely reiterate our UNDERPERFORM rating and foresee insignificant changes to our target price, which is currently VND94,500 per share. DHG is trading at an unappealing TTM PER