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VNM [MARKET PERFORM +4.3%] - Unwavering competitiveness amid temporary weak demand - Update

We maintain a MARKET PERFORM rating but trim our TP by 12.5% due to downward revisions in our domestic dairy sales forecasts and target TTM PER while also raising our capex projections. H1 2018 NPAT slid 8% YoY due to stagnant overall FMCG consumption, including a 6% drop in dairy, in Vietnam. Meanwhile, exports continued to be weighed down by instability in Iraq. As the dairy market did not recover in Q2 2018 as we expected, we trim VNM’s 2018F domestic dairy revenue by 7%.