Analyst Pin-board GEG - Growth from wind power
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· Revenue was VND 313 bn (or USD 14 mn) in 3Q2021, -11% YoY and -2% QoQ. Hydropower’s revenue increased 20% YoY in line with our expectations while that of solar power experienced a decline of 10% YoY due to volume curtailment during 3Q2021. Earnings in 3Q2021 were relatively low, VND 53 bn (or USD 2.3 mn), -1% YoY and -17% QoQ. · The hydropower segment will perform well in 4Q2021 because the volume curtailment is expected to ease for solar power plants. We forecast earnings in 4Q2021 to be VND 109 bn (or USD 4.7 mn), +37% YoY. · Our target price for GEG is VND 23,000, implying a total return of 10% compared to the closing price on Dec 22nd, 2021. Hence, we recommend to ACCUMULATE this stock. The company has numerous potential projects in its pipeline consisting of wind and solar power. This could be a strong catalyst for this stock. |
Gia Lai Electricity Joint Stock Company (GEC) is a Vietnam-based renewable independent power producer. The Company's main business activities is the generation of electricity via the operation and management of hydro power plants and solar power plant. The Company is also engaged in the construction of power lines, power transmission infrastructure and public lighting systems; the installation of electrical equipment and machinery for power plants, and the manufacture of precast centrifugal concrete structures, as well as galvanized mechanical components. GEC is also involved in the provision of architectural and engineering services, construction consultation and supervision services for power plants.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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