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VIC [OUTPEFORM +12.7%] - Rebound in higher margin deliveries expected over Q2-Q4 - Update

We downgrade VIC to OUTPERFORM from BUY and lower our target price 11% to reflect VIC’s lower stake in residential projects following the Initial Equity Offering (IEO) of Vinhomes (VHM). Despite the sideways move in Q1 2018 earnings, we expect higher-margin deliveries at its landed property developments (e.g., Imperia and Harmonia) to accelerate earnings in coming quarters, boosting our 2018F NPAT-MI growth of 42% to VND6.0tn (USD263mn).