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VEA [BUY +38.2%] - Gateway to Vietnam’s motorization - Initiation

We initiate on VEA with a BUY rating. Stock looks cheap with a three-year PEG of 0.7. VEAM’s attractive dividend yield of 12.4% for FY2018 should be sustainable. VEA provides exposure to Vietnam’s booming car and extensive motorbike markets thanks to its 20%-30% stakes in Honda, Toyota and Ford Vietnam, which combine for nearly 40% market share in passenger cars and over 70% in motorbikes.