POW [OUTPERFORM +19.4%] - Nhon Trach 3 & 4 progress despite high LNG prices

- We lower our target price (TP) for POW by 8% to VND16,600/share but maintain our OUTPERFORM rating. We view POW as a solid play on growth in Vietnam’s electricity consumption and structural transition to LNG with the future Nhon Trach 3 & 4 LNG-fired plants.

- We cut our TP as we decrease our aggregate 2022-2031F NPAT forecast by ~2% and increase our in-house cost of equity by 50 bps.

- The downward revision in our aggregate 2022-2031F NPAT forecast is due to a further decrease our in 2022-2023 earnings forecasts for the Vung Ang and Ca Mau plants due to the risks of a coal shortage and high gas prices being more material than we previously expected.