We cut our TP for PPC by 7% to VND18,600/share but maintain a MARKET PERFORM rating. While we still like PPC’s assets (i.e., Pha Lai 2 and its stakes in HND & QTP) as well as its ideal location in northern Vietnam (a region with expected double-dight electricity consumption growth), we believe the delayed repair of its S6 generator will weigh on PPC’s dividend and share price.

Our lower TP is due to decreased valuations for PPC’s standalone power generation business and its associates HND & QTP following our 50-bp higher risk-free rate assumption.

We lower PPC’s 2022F/2023F NPAT by 11%/10% as we project 33% lower dividend income from associate HND following HND’s AGM resolution and guidance.