- We maintain our target price (TP) for POW at VND13,600/share and maintain our BUY rating as stated in our POW Update Report, dated October 25, 2023. We view POW as a solid play based on Vietnam’s resilient power consumption and structural transition to LNG with its Nhon Trach 3 & 4 LNG-fired plants targeting to come online in late 2024/mid 2025.

- POW released 9M 2023 revenue and reported NPAT-MI of VND21.5tn (+5% YoY) and VND743bn (-39% YoY), respectively. The YoY decline in reported NPAT-MI can be attributed to (1) a 45% YoY plunge in  POW’s gross profits resulting from higher maintenance and operations costs for its gas-fired power plants (as they had to run on diesel oil (DO) in Q2),  (2) low competitive generation market (CGM) prices in August and September due to unexpectedly high rainfall, (3) NT2’s major maintenance which was scheduled for most of September, and (4) POW not recording one-off profit in 9M 2023 vs ~VND600bn in 9M 2022. 

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