We maintain our MARKET PERFORM rating for VNM. In our view, VNM’s current 2021F PER of ~21x looks full given its single-digit earnings growth outlook due to limited headroom for market share gains. In addition, rising input milk powder prices could threaten the company’s profit margins. We lower our target price by 3% as we trim our aggregate 2021F-2023F NPAT-MI by 3% mainly due to higher projected milk powder prices.