Viet Dragon Securities - PetroVietnam Power NhonTrach 2 (NT2) Analyst Pin-board NT2 – AGM Update

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Viet Dragon Securities

Son Tran

Analyst Pin-board NT2 – AGM Update

· The AGM approved 2022 financial guidance, which targeted revenue and NPAT to be VND 8,128 bn (or USD 353.4 mn, +32% YoY) and VND 468 bn (or USD 20 mn, -12% YoY), respectively. Actual cash dividends for the year 2021 exceeded the 2021’s guideline by 10% to VND 1,650.

· Core earnings in 1H2022 are higher than expected thanks to an increase of mobilized volume and selling price. Revenue and NPAT in 2022 are forecasted to be VND 7,946 bn (or USD 326 mn, +29% YoY) and VND 650 bn ( or USD 28 mn, +22% YoY), respectively.

· In 2022 and 2023, NPAT is made up of FX reversal that will boost the company’s earnings. Holding prosperous cash flows from 2022, the company will utilize these to pay high dividends in the coming years.

· Our target price for this stock is VND 29,200, comprising of VND 650 of dividends in the next 12months, offering an upside of 12% compared to the closing price as of June 10^th , hence investors might accumulate this stock.

10/06/2022 6 EN

Underlying

PetroVietnam Power NhonTrach 2

PetroVietnam Power NhonTrach 2 JSC. PetroVietnam Power Nhon Trach 2 Joint Stock Company (PV POWER NT2) is a Vietnam-based company operating in the energy industry, which operates and manages the 750-megawatt (MW) Nhon Trach 2 combined-cycle power plant located in Phuoc Khanh commune, Nhon Trach district, Dong Nai province. The electricity output of the power plant is purchased by Vietnam Electricity, and it is directly transmitted into the national grid system.

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VN000000NT22 Hochiminh Stock Exchange Vietnam

Provider

Viet Dragon Securities

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.

RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”

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Analysts

Son Tran

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Analyst Pin-board NT2 – AGM Update

NT2 – Earnings will turnaround in 2024, but valuation looks fair

NT2 – Tough in the near term, but negatives partly priced in

NT2 – Q2/2023: Lower-than-expected earnings due to a gas supply insufficiency

Week Ends in Green

DPR – Compensation from Tien Hung 2 drives strong Q2 profit growth

Fertilizer industry – Big players looking to expand NPK share as Urea market saturates

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