- We increase our target price for REE by 6% to VND85,300/share and upgrade our rating from OUTPERFORM to BUY.

- Our higher target price is due to (1) our 3% higher aggregate 2023-2027F NPAT-MI forecast that is mainly due to our higher earnings forecasts for REE’s real estate segment and 52%-stake hydro subsidiary Vinh Son Song Hinh Hydropower JSC (VSH) and (2) the positive effect of rolling our target price horizon forward to mid-2023.

- We forecast 2023F NPAT-MI of VND2.6tn (-2% YoY) mainly due to 31% YoY lower earnings from the hydropower segment, which is almost offset by wind power earnings more than doubling to VND352bn with 100 MW of new wind power capacity and real estate earnings quadrupling to VND272bn.

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