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MWG [BUY +45.4%] - Sprinting ahead with DienmayXANH - Update

We reiterate our BUY rating for MWG and revise our TP by +9% on a 120 bps reduction in WACC and roll-over effects, offsetting lowered FY16F earnings due to unexpected additional SG&A. Increased cash bonuses for staff and a marketing ramp-up for DienmayXANH curb earnings growth in H2 2016 but will cement FY17 revenue growth of 49% and EPS growth of 40%. DienmayXANH will be key driver with 415 total stores projected by YE2017 from 215 by YE2016. Compelling valuation at FY17F PER of 9.9