- We raise our target price (TP) for POW by 4.8% to VND13,200/share and upgrade our rating from OUTPERFORM to BUY.

- Our higher TP is due to a 1% increase in our aggregate forecast 2024-2028F NPAT (respective changes +17%/+3%/+6%/-5%/-5% for 2024/25/26/27/28F) and the positive impact of rolling our TP from end-2024 to mid-2025. These changes follow POW’s solid Q1 results (driven by its Vung Ang coal-fired power plant in the north of Vietnam), our lower 2024F projected loss from NT2, and higher projected CGM price across our forecast period due to our higher projections for national power demand (see our Thermal power sector update, dated May 16).

- We forecast POW’s 2024F reported NPAT-MI to grow by 36.5% YoY, driven by Vung Ang’s earnings expanding by 3x (based on our assumptions for its full-capacity operation, high CGM prices in the north and VND300bn insurance compensation), and Ca Mau’s earnings increasing by over 3x on strong YoY volume growth.

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