We upgrade our rating for PC1 from OUTPERFORM to BUY despite cutting our target price 31% to VND26,500/share as the company’s share price has slumped 53% over the past three months. Our lower target price is due to (1) a 24% downward revision in our aggregate 2022-2026F NPAT and (2) 100-bp increase in our in-house cost of equity and 200-bp higher cost of debt assumptions.

We lower our 2022-2026F aggregate earnings forecast as we delay the earnings recognition of residential projects and land sales of PC1’s associate Western Pacific’s Ha Nam industrial park from 2023-2027F to 2025-2028F due to the delayed investment approval process, lower power generation profits from a lower-than-expected utilization rate and higher financial expenses.