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GAS [M-PF +10.7%] – Gloomy outlook but exposure to oil price will decline– Update

We reduce our TP for GAS by 13% to VND38,500 mainly due to G-bond yield rising to 6.5% and a 13% decline in estimated 2016 earnings on a lower oil price assumption of USD40/bbl (-26% vs. 2015). However, we raise 2015’s NPAT by 13% on the back of less than expected retroactive loss for the above take or pay (AToP) volume linking to market price for which GAS deferred the application from 1 April 2014 to 31 July 2015.