We downgrade DRC to a MARKET PERFORM rating and trim our target price by 9% to VND22,900, implying a total stock return of 0% inclusive of a 2.1% dividend yield. Our target price revision is mainly due to: (1) lower gross margin assumptions (2) a shortened capex allocation period for DRC’s phase-2 radial factory (2016-2018 vs our old forecast of 2016-2020) as confirmed by DRC and (3) increased selling costs.