KDC - BUY - Trimming SKUs and brands to focus on higher margins yields positive 1Q results - Update

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We upgrade our rating on KDC from HOLD to BUY and raise our 12M target price to VND62,400. We expect 20% EPS growth per year from 2013 to 2015 thanks to a rebranding initiative that should promote volume growth in more popular, high-margin SKUs and the introduction of new product categories such as instant noodles. Strong 1Q13 results shows progress as sales grow 14% and gross margin increase 400bps.
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