We maintain a BUY rating on PNJ, which, in our view, is in a prime position to capitalize on Vietnam’s fast-growing middle-affluent class. Our TP increases 7% as our valuation switches from a 70/30 DCF/PER mix to 100% DCF. Given PNJ’s much stronger growth outlook, we believe PNJ’s PER deserves a premium vs regional peers. Previously, we simply used a median peer PER in our valuation of PNJ.