We reiterate our BUY rating on QNS as we believe it is undervalued at a 2018F PER of 9x after having fallen 43% over the past 12 months. However, we raise our discount for a sum-of-part valuation from 20% to 30% due to QNS’s continual capital misallocation with new investments in the sugar business. Per our projections, QNS’s return on invested capital (ROIC) will deteriorate from a peak of 36% in 2015 to 19% in 2020.