DQC’s 9M 2018 results reinforce our view that the company’s new, more affordable LED line-up will help backstop a slide in GPM while buoying sales on the back of its price competitiveness. In 9M 2018, DQC delivered operating profit of VND58bn (USD2.5mn, +20% vs 9M 2017) and NPAT of VND74bn (USD3mn, +1% vs 9M 2017). While operating profit was primarily driven by an 11% increase in revenue, NPAT grew more slowly because of smaller net interest income and shared losses from associate companies.