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NLG [BUY +44.5%] - Launching Waterpoint a watershed moment - Update

We maintain our BUY rating on NLG and raise our target price by 13% to VND43,000/share (total return of 44.5%) mainly due to a higher valuation of the Waterpoint project. We expect imminent stake sales at Akari City and Waterpoint will accelerate H2 2018 results, boosting 2018F NPAT-MI to VND853bn (USD37mn, +59% YoY). The higher-than-expected value of Waterpoint’s first phase stake sales leads us to revise up our 2017-2020F NPAT-MI CAGR for NLG to 33% vs 25% previously.