We lift our target price by 57.2% and issue a MARKET PERFORM (M-PF) recommendation with 5.5% total return due to higher oil price assumptions, a better outlook for the Mechanical & Construction (M&C) segment and removal of a 15% discount for geopolitical risk. We expect 2018 NPAT-MI to stay flat vs 2017 as strong M&C performance from Red Emperor and Sao Vang-Dai Nguyet projects will offset the impact of a lower Floating, Production, Storage and Offloading (FPSO) Lam Son day rate.