SBV – Update – 20180316

• SBV still offers meaningful upside given its solid volume growth outlook which, in the short-term, depends on how fast they can complete machinery installations at the new factory.
• Rising material costs may pressure short-term results but we believe SBV’s strong brand gives it the power to partially pass through input cost increases to customers.
• We remain positive on FY18 results as we predict partial pass through of higher input prices.
• We haircut our DCF-based TP to VND40,900 due to 1) our reduction of FY2018 volume forecasts; 2) higher expected material costs. We however reiterate our Add recommendation for SBV with a 23% upside and also highlight the dividend yield of 3.0%.

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