GEG released Q2 2022 results with revenue surging 58% YoY to VND506bn (USD22mn); however, reported NPAT-MI declined 54% YoY to VND30bn (USD1mn). We attribute the discrepancy between the top-line and bottom-line results in Q2 2022 to the small contribution from new wind power plants in Q2 2022 due to seasonal effects, which could not outweigh surging interest expenses.

H1 2022 reported NPAT-MI completed 36% of our full-year forecast. We expect earnings to accelerate in future quarters as H2 2022 will be the peak season for GEG’s hydropower and wind power plants. Nevertheless, we foresee slight downside risk to our 2022 earnings forecast due to lower-than-expected solar power volume, pending a fuller review.