- We upgrade our rating for PVS from OUTPERFORM to BUY and raise our target price (TP) by ~46% to VND30,600/share. Our higher TP is due to our ~34% higher aggregate 2023-2027F reported NPAT-MI that results from ~56% higher aggregate 2023-2027F mechanics & construction (M&C) revenue as we factor in the huge potential of offshore wind power projects.

- We forecast reported NPAT-MI to be relatively flat YoY in 2023 as we expect higher M&C profit will offset lower profit from the floating oil storage segment (i.e., FPSO Ruby II).

- We are optimistic about PVS’s outlook with significant near-term job opportunities from overseas offshore wind power projects. Meanwhile, its long-term growth will come from domestic offshore wind power projects. We project a ~20% 2022-2025F EPS CAGR to be bolstered by an end-2022 projected M&C backlog of ~USD4.8bn and stable FSO/FPSO profit.

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