Viet Dragon Securities - Analyst Pin-board Do we overlook the thermal group?

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Viet Dragon Securities

Son Tran

Analyst Pin-board Do we overlook the thermal group?

Earnings from the thermal group in 9M2021 were generally low due to difficulties in the industry. Results from most thermal companies experienced a decline in PBT except for POW, PGV and QTP.
The turnaround story for the thermal group is expected to happen in 2022 based on higher probability of El Nino. Hence, earnings in 2022 are forecasted to grow to normal levels.
Dividends from thermal companies are attractive.

Earnings from the thermal group were relatively low in 9M2021

2021 has been a harsh year for the thermal group with numerous difficulties including (1) the hydropower group has outperformed thanks to favorable hydrological conditions. Year to date, La Nina phenomenon has performed well. (2) the renewable energy sector has captured share from the thermal group. (3) low demand because of several lockdowns.

Most of thermal-company stocks experienced a decline in PBT in 9M2021 except for POW, QTP and PGV. POW and PGV grew in PBT year on year thanks to one-off earnings instead of core earnings. In terms of QTP, the company extended its depreciation schedule and had adjustment at the end of 2020 for the whole year. Thus, earnings in 9M2021 were higher than that of 2020, but for the whole year, earnings in 2021 will be lower than that in 2020. In conclusion, core earnings from the thermal group in 9M2021 was lower than that in 2020.

18/11/2021 5 EN

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Analysts

Son Tran

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Analyst Pin-board Do we overlook the thermal group?

CTG - Solid Growth Outlook as Provisioning Pressures Subside

BREAKING ABOVE 1,300 POINTS

Comparison of domestic natural gas and LNG fuel sources

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