VCF – Masan’s influence boosted Vinacafe’s revenue and stock price

■ VCF’s revenue grew by about 12% in FY16, supported by 13% coffee consumption in Vietnam and the introduction of new products – under MSN’s guidance.
■ The company’s share price increased by more than 20% since early 3Q16, partly because Masan increased its VCF ownership stake in December.
■ We maintain our DCF-based target price (15% WACC), but downgrade VCF to a Hold rating, as its stock price hit our target, after a 30% run-up over the last year.