- We raise our TP for PC1 by 2.5% and upgrade our rating from OUTPERFORM to BUY. Our higher TP is due to a 2.3% increase in our aggregate 2024-2028F NPAT-MI forecast (respective changes of -9%/-7%/1%/+10%/+4%, details on page 4).

- Our higher aggregate earnings forecast is driven by (1) a 104% increase in residential real estate earnings, incorporating Bac Tu Liem (VND334bn NPAT in 2027/28F) and Thap Vang (VND150bn NPAT in 2025/26F) projects, (2) a 31% boost from the Western Pacific IP, mainly due to the incorporation of the Yen Lu IP (investment approved in July 2024), and (3) a 30% rise in hydropower earnings, driven by higher 2024F volume expectations, as PC1 is confident in exceeding its guidance due to favorable hydrology.

- These factors outweigh our lower 2024/25F earnings/revenue projections for the power construction segment.

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