VNM [MARKET PERFORM +6.6%] - Margin expansion continues to play out in 2018 - Update
We reiterate a MARKET PERFORM rating although we raise our TP by 8% attributed to a 1.1 ppt reduction in our DCF risk-free rate. Our TP puts VNM’s 2018F PER at 27x. 2017 NPAT rose 10% YoY on 14% domestic sales growth, which was underpinned by market share acquisition. Meanwhile, exports slumped 23% YoY due to internal instability in Iraq.