TCM [OUTPERFORM +18.5%] - Export markets, GPM improvement drive growth - Update

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We maintain our OUTPERFORM rating on TCM with 18.5% total stock return. We maintain our target price of VND33,500 mainly driven by continued (1) strong garment export markets and (2) a small contribution from the low-margin yarn segment. We forecast 2017 revenue and NPAT to grow by 6.8% and 97.8%, respectively, and 2018 revenue and NPAT, in turn, to grow by 5.3% and 11.1%. NPAT excluding one-off financial gains should increase by 73.6% and 11.1% in 2017 and 2018, respectively.
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