We maintain our MARKET PERFORM rating on DRC as we raise our target price (TP) by 6.5% to VND24,400 per share. Our higher TP mainly reflects an increase in our 2019/2020/2021 NPAT-MI forecasts by 22%/61%/45% as we raise our gross margin estimates by 0.9ppts/2.0ppts/3.4ppts for these years. This increase is mainly driven by our higher radial tire volume assumption, which we forecast will reach ~600,000 units in 2021 (the maximum capacity of DRC’s radial factory).