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GTN [MARKET PERFORM +9.9%] - Dairy ambitions stifled by the mighty Vinamilk - Update

We update GTN with a MARKET PERFORM rating and a target price of VND11,200, implying a total stock return of 9.9%, inclusive of 5% dividend yield. NPAT-MI surged 41% YoY in H1 2018, despite softer dairy revenue, thanks to a larger ownership stake at Moc Chau Milk (MCM), lower dairy input costs and narrowing losses from pig farming. We forecast a 57% YoY jump in 2018 NPAT-MI driven by a stronger dairy consumption in H2 2018 and widening margins at Vinatea.