We upgrade our rating on DRC to OUTPERFORM from MARKET PERFORM as we raise our target price (TP) by 4.9% to VND25,600 per share. Our higher TP mainly reflects increases of 30%/8%/8% in our 2020/2021/2022 NPAT-MI forecasts that are primarily driven by increases in our gross margin estimates of 3.5 ppts/2.9 ppts/3.1 ppts, respectively. These increases are driven by a 7.8% cut to our assumed carbon black (CB) price (c.14% of DRC’s total production cost) in 2020F and higher utilization at DRC’s