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KDH [M-PF +2.9%] - 2017 earnings growth on track, all eyes on Jamila sales - Update

We reiterate a MARKET PERFORM (M-PF) rating for KDH including a 3.8% dividend yield. We raise our target price 10% on a 30 bp cut of WACC and a lower net debt balance in Q1 2017. Sale of stake in associate boosted Q1 2017 NPAT-MI to VND110 billion (USD5 million). Excluding VND30 billion (USD1 million) of pre-tax financial income from the deal, we estimate normalized Q1 2017 earnings would have declined 9% Y-o-Y with a normalized NPAT-MI margin of 13.4%.