- We cut our target price for REE by 6% to VND80,500/share and maintain our OUTPERFORM rating. We maintain our optimistic view about REE’s potential capacity expansion in Vietnam’s promising renewable energy sector via rooftop solar & wind power over the long term as the company has the strongest financial capability among our renewable stock coverage.

- Our lower target price is due to our 6% lower aggregate 2023-2026F NPAT-MI forecast following our decreased earnings assumptions for the rooftop solar and M&E segments.

- We forecast 2023F NPAT-MI of VND2.3tn (-15% YoY) mainly due to 42% YoY lower earnings from the hydropower segment that outweigh wind power earnings more than doubling YoY to VND352bn with 100 MW of new wind power capacity and 26% YoY NPAT growth for M&E.  

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