We reiterate our MARKET PERFORM rating for VNM with 7.1% total return. TTM PER of 24x is above the regional peer-adjusted PER, but justified given VNM’s superior fundamentals. H1 2017 NPAT +18% vs H1 2016 thanks to upbeat domestic sales growth of 17% bolstered by market share acquisition. However, exports -18% vs H1 2016 due to internal conflict in Iraq. We project 17% domestic revenue growth for FY17.