MWG [BUY +52.4%] - Scaling up BachhoaXANH is not a matter of if, but rather when - Update
We reiterate our BUY with TP raised by 14% as we incorporate BachhoaXANH (BHX) into our valuation. We see solid progress in BHX while management said scaling it up is a certainty. Compelling valuation at FY17F PER of 11x. Excluding BHX, our TP would be VND236,000. Due to the high uncertainty of assumptions, we use a DCF discount rate of 30% for BHX for now. We project BHX to start generating net profits in 2019, when it reaches 1,800 in store count.