We update DQC with a MARKET PERFROM rating and a total stock return of 0.0%. Sales have improved, but we see no structural change to the industry - such as taxes on imported products - on the horizon to really turn around DQC’s growth and profit margin prospects. NPAT rose 12% YoY in Q1 2018 as non-core divestment gains masked a 7% decline in operating profit, which was caused by hiking sales discounts and sales force expenses.