NT2 [MARKETPERFORM +1.1%] - Higher sales volume, one-off income to reduce 2024F loss

- We raise our target price (TP) for NT2 by 6.0% to VND21,300/share and upgrade our rating from UNDERPERFORM to MARKET PERFORM.

- Our higher target price is driven by our 6% higher aggregate 2024-2028F recurring NPAT forecast (N.M.*/+1%/+5%/+4%/+1%, respectively – details on page 3) and the positive impact of rolling our TP horizon forward to mid-2025. (* reduced net loss forecast for 2024F).

- Our higher 2024-2028F aggregate earnings forecast is primarily due to a significantly lower 2024F reported net loss forecast from a net loss of VND249bn previously to a net loss of VND116bn. This is mainly driven by our 7% higher 2024F sales volume to 2.1 billion kWh (-28% YoY) from 1.9 billion kWh (-33% YoY) previously and VND70bn of other income. Additionally, we increase our 2024-2028F ASP forecasts (0%/+3%/+3%/+4%/+5%) due to NT2’s 3% higher CGM price across the forecast periods following our 5% increase in the sector’s CGM price forecast (see our Thermal power sector update, dated May 16).