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NT2 [BUY +38.7%] - Gas pipeline's one-off issue hurts 2018 profit - Update

We maintain a BUY rating but lower our target price by 16.9% due to a higher market risk premium as well as a lower forecast for 2018 earnings. H1 2018 recurring NPAT was weak (-20.7% YoY) due to (1) a low sales volume recovery of 17.2% YoY because of a gas shortage and (2) a gas price increase of 20.6% YoY in H1 2018. We cut our 2018F recurring NPAT by 16.4% to VND828bn (USD36mn, -21.2% YoY), mainly due to lower than expected sales volume and higher gas price assumption.