- We attended REE’s AGM during which the company’s chairwoman & CEO provided details regarding the company’s 2023 business guidance and long-term strategy. Overall, the company’s 2023 NPAT outlook is resilient (flat YoY following 2022’s high base). In addition, REE sees M&A opportunities — especially in hydropower and wind power. 

- REE set an ambitious target to increase its 2023 revenue by 17% YoY to VND10.9tn, which is 20% higher than our forecast. Moreover, the company targets VND2.7tn of NPAT in 2023, beating our forecast by 17%. We see potential upside to our 2023F NPAT forecast, pending a fuller review, mainly due to sales of low-rise units at REE Land’s Bo Xuyen residential real estate project in Thai Binh Province (vs our forecast of no revenue and NPAT for the real estate segment).  

- The AGM approved a 15% stock dividend and 10% cash dividend (VND1,000/share — 1.5% dividend yield) for 2022. The AGM also approved to allow the BOD decide if the company will pay a cash dividend for FY2023 or reinvest 100% of its 2023 earnings.

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