We upgrade KDH’s rating to OUTPERFORM from MARKET PERFORM and increase our target price 39%, reflecting our expectation the BCI merger will lead to monetization of its land bank. We raise our 2018 NPAT-MI forecast by 20% to VND758bn (USD33mn, +49% YoY), mainly driven by a faster pace of deliveries at low-rise projects and several project transfers. KDH’s proven sales capabilities and promising prospects of new key launches in District 2 and 9 in HCMC will support 2018F contract sales