we downgrade DHG to UNDERPERFORM as we believe it is overvalued at a 2018F PER of 25.5x against muted prospects of which we forecast a 2017-2020F NPAT CAGR of 2%. Q1 2018 in-house sales slid 4% YoY, solidifying our conservative view on DHG amid stiff competition in the over-the-counter (OTC) channel and its lack of product differentiation. In the coming years, we see DHG’s in-house sales growth in a low to mid-single-digit range, bolstered by sales force expansion to provide better services