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DRC [OUTPERFORM +17.1%] - Stiff competition in domestic market depresses earnings - Update

Company Research

19 Sep 2017

We upgrade our rating to OUTPERFORM (O-PF) with a 17.1% total return, but lower our TP by 5.5% to VND25,140 as we expect margins to remain under pressure due to intense competition in DRC’s domestic market, an expected increase in natural rubber price of 15% vs 2016 and greater sales contribution from an unprofitable radial tires segment.
Tags: DRC

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