VJC – We increase our target price but maintain our HOLD rating as VJC is already trading at a substantial premium to peers.

■ 2017 transport revenue reached VND17,001bn (+41.6%) and ancillary revenue touched VND5,477bn (+54.3%).
■ Aircraft sales in 2017 reached VND19,783bn, the highest level in history.
■ We expect 2018 transport revenue to reach VND21,335bn (+25.5%) due to 1) 18.3% passenger volume growth and 2) 6% passenger yield growth as VJC could still pass on incremental fuel costs to passengers.