- We initiate coverage of TV2 with a BUY rating and a target price of VND58,300/share. TV2 is a beneficiary of Vietnam’s robust power capacity expansion. TV2’s key services are: (1) power consulting, (2) engineering, procurement & construction (EPC) contracting, and (3) power plant operations & maintenance (O&M), which together accounted for ~95% of TV2’s gross profit in 2023. TV2 also has interests ranging from 10% to 100% in renewable power projects with a total operating capacity and under-development pipeline of 50 MW at end-2023.

- We forecast 2024/25F NPAT-MI at VND85bn and VND386bn, respectively, driven by (1) the execution of the Song Hau 2 thermal power project’s EPC contract (we forecast TV2 to record ~VND800bn/VND8.7tn in revenue in 2024/25F or 3%/33% of the total EPC contract value for TV2) and (2) a recovery in power consulting earnings from 2023’s low base.

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