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PC1 [BUY +28.2%] - Growth outlook intact despite weaker than expected 2016 - Update

We lower our target price by 4.0% but keep our BUY rating with 28.2% total return. 2016 EPS fell 2.4% due to slow contract finalization of the grid erection segment, an unexpected loss from a JV and dilution from capital raising last September. We forecast a 1.6% EPS decline in 2017 but expect 46.4% 2018 EPS growth on the back of the third national transmission line, four hydro power plants in operation and contribution from My Dinh 02 plaza.