- We increase our target price (TP) for REE by 13% and maintain an OUTPERFORM rating.

- Our higher TP is driven by a 10% increase in our aggregate 2024-2028F NPAT-MI projection (0%/-6%/+3%/+20%/+26% for 2024-28F, respectively – details on page 3). This is mainly due to respective increases of 9%/14% in our aggregate 2024-2028F earnings forecasts for REE’s power and water segments and the positive impact of rolling our TP to mid-2025.

- We forecast 2024F NPAT-MI to grow by 5% YoY to VND2.3tn mainly due to (1) a jump in real estate earnings and (2) VND141bn net profit from M&E vs a VND9bn net loss last year. These factors outweigh 17% YoY lower NPAT-MI from the power segment, which is mainly due to lower profits from hydropower plants. We expect a weak Q1 2024 result due to the plunge of hydropower volume with the on-going El Niño phenomenon.

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