- We increase our target price (TP) for REE by 8% but downgrade our rating to MARKET PERFORM as the share price has rallied 28% over the last four months. 

- Our higher TP is driven by a 4% increase in our aggregate 2024-2028F NPAT-MI projection (respective changes of -12%/-3%/+6%/+9%/+12% – details on page 4). 

- Our higher five-year aggregate NPAT-MI is primarily driven by the inclusion of the 48 MW Duyen Hai wind farm and an additional 200 MW of wind power capacity in 2027F and 2028F. These outweigh our lower earnings projections for hydropower in 2024F and a reduced contribution from PPC following our switch from the equity method to the cost method, in anticipation of REE reducing its stake in PPC to below 20% in H2 2024.

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