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6PM Call: The VN-Index Reached a New Record High Level - BMI Update

REE continued its gain experienced since the end of 2016, and rose by 7% during today’s trading session. As we mentioned in our Strategy Report in May 2017, we believe that the electricity segment will largely contribute to REE’s positive outlook. We believe that the hydropower segment will have positive results and that REE’s consolidated PAT will not be subject to foreign exchange risks, as PPC paid its debt before the due date. We also observed that La Nina and El Nino supported the electricity demand and the unusual rain increased the electricity output of plants in the central, central highland and the southern regions in the first four months of 2017. Almost all hydropower plants recorded impressive operating results, which were above multi-year averages. Although there are concerns about the return of El Nino in the second half of 2017, we do not think the risk will be notable, as the rainy season started early. We think hydropower companies in REE’s portfolio including CHP, SHP and VSH will have an optimistic outlook.