We upgrade our rating on DHG from ADD to BUY with a new target price of VND108,000 based on our forecast of 17% average earnings growth p.a. for the next five years to be supported by a doubling of capacity in 2014, which is much needed given that utilisation is now 100%. With volumes expected to grow at least 10% p.a. we believe DHG, the leading pharma firm in the sector, deserves richer multiples than its PER of 9.1x and 8.2x, pegged to 2013 and 2014 earnings respectively.