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MWG [BUY +39.7%] - Top-notch execution on grocery ensures next leg of growth - Update

We reiterate a BUY rating with total return of 49%. Three-year PEG ratio looks attractive at 0.6. We revise TP by +16%, driven by Bachhoaxanh’s (BHX) much-improved sales/store and a 5 ppt reduction in the DCF discount rate to 25% on more concrete visibility into its prospects. A new selling method for meat and fish at BHX has boosted sales of pilot stores to USD60,000-88,000/month (+30%-70%). We nudge up our BHX sales forecast for FY17 and beyond.