PPC’s NPAT in Q1 2023 was VND40bn (-50% YoY). The plunge in Q1 2023 earnings was due to (1) a 9% YoY decrease in sales volume, (2) a 42% increase in average material costs, which outweighed a 34% increase in average selling price (ASP), and (3) a 37% YoY decline in dividend income. PPC’s Q1 2023 NPAT completed 11% of our 2023F full-year forecast. However, we expect the reoperation of Pha Lai 2’s S6 generator (300 MW — 50% of Pha Lai 2’s capacity) will contribute to volume growth in H2 2023. We also expect increased dividend income from HND and QTP in the subsequent quarters of 2023. Therefore, we see insignificant change to our forecast. 

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