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HPG [O-PF +11.2%] - Yuan devaluation weighs on steel margin - Update

We lower TP by 4% as Yuan devaluation weighs on steel margins and construction steel price fell by 7% over July & August. We also deduct from the TP, VND 770 per share amounting to a provision for the agri business. Yuan devaluation totalling 2.9% during 8M15 is expected to amplify competition in Viet Nam steel sector and slightly outweighs the support from vigorous infrastructure & real estate sector, therefore, we lower our earnings forecast for 2016 by 3%.