We downgrade our rating from OUTPERFORM to MARKET PERFORM due to a 24% share price increase over the past three months. In our view, QNS’s current 2021F PER of 9.8x is fair given its potentially inefficient capital allocation and earnings volatitly due to the sugar segment. We increase our target price (TP) by 6% as we raise our aggregate 2021F-2023F NPAT-MI by 18% mainly thanks to our higher sugar GPM forecasts amid a tighter supply outlook and Vietnam’s new trade barriers