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MWG [BUY +66.9%] - BHX roll-out to tread more carefully - Update Report

We reiterate our BUY rating with a 67% total return. MWG’s three-year PEG is appealing at 0.6. We cut our TP by 3% as we tone down our store projections for BachhoaXANH (BHX/minimart) given management’s shift in priority from network expansion to store quality, i.e., sales/store. Accordingly, our 2017-2022 NPAT CAGR forecast for MWG is curtailed from 23% to 21%. 2018F: NPAT to rise 33% YoY on the back of DMX, partly offset by a loss of USD5.5mn at BHX.