DHG’s net revenue and NPAT grew 4% and 6%, respectively, in 9M 2017 vs 9M 2016. In-house product sales disappointed, posting a decline of 5% in Q3 2017 vs Q3 2016 even though advertising expenses surged 56% in Q3 2017 vs Q3 2016. This result trails our expectation and underscores our conservative view on the company’s sales outlook. We will likely revise down our FY17 forecasts in the next update. DHG is trading at an unappealing TTM PER of 22.9x.