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VNM [BUY +30%] - Collapse in milk powder prices a huge boon - Update

Strong 1H15 performance as sales strengthened while margin expansion exceeded our expectation. We raise our FY15 EPS forecast by 9% as we increase FY15F NPAT margin by 120 bps (see detailed forecast revision in page 4). We also lift our FY16 EPS forecast by 27% driven by continuing slump in milk powder prices, which expect to remain weak for another 6-12 months. TP (adjusted for cash and share dividends) revised by +12% to VND 121,000.