We raise our target price by 3% to VND32,600/share but downgrade our rating from BUY to OUTPERFORM as TDM’s share price has increased 14% in the past three months. We maintain our optimistic view on TDM having oligopoly power in Binh Duong (a top-three province in attracting FDI in Vietnam) and its 38.5% stake in BWE (the leading water provider in the province). Our higher target price is due to increasing our terminal growth assumption (from 0% to 1%) and a higher valuation for TDM’s 38.5%

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