We downgrade DRC to UNDERPERFROM from MARKET PERFORM with a target price of VND18,000, implying a total stock return of -19.1%. Our target price cut reflects: (1) a lower volume growth forecast as DRC’s competitive position continues to deteriorate following an increase in its selling prices and (2) our expectation that the radial tires segment will remain loss-making rather than break-even in 2018.