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Viet Dragon Securities
Son Tran

Analyst Pin-board NT2 – Surprise earnings in 3Q2021 thanks to externalities

  • Volume in 3Q2021 reached 461 million kWh, -40% YoY and -52% QoQ. The company provided extremely low volume in 3Q2021 because of low demand, which was affected by the strict lockdown in HCMC and the South of Vietnam. The company only provided roughly half of its contract volume.
  • Despite the low volume, revenue in 3Q2021 was VND 1,250 billion (or USD 54 million), +8% YoY and -23% QoQ thanks to the compensation revenue that was ensured by contract volume. Meanwhile, COGSs declined by 13% QoQ and -161% YoY in line with the volume trend. Gross profit was VND 305 billion (or USD 13 million), +349% YoY and +318 QoQ. NPAT was VND 273 billion (or USD 11.8 million) while that in 2020 was a loss.
  • For the year 2021, revenue and NPAT are forecasted to be VND 5,925 billion (or USD 258 million) and VND 471 billion (or USD 20.5 million), -3% YoY and -25% YoY, respectively. This forecast is not including potential FX revenue as we mentioned in . 
  • The company’s profit might be tailing off in the medium term, yet the prosperous cash flow might attract investors. Our target price is VND 24,300 with a VND 1,000 dividend in the next 12 months, implying a total return of 9% compared to the closing price on Nov 2nd, 2021. We are NEUTRAL on this stock. Please note that the company might pay more dividends up to VND 3,000 per share thanks to its available source.

 

02/11/2021 7 EN
Underlying
PetroVietnam Power NhonTrach 2
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

​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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Analysts
Son Tran

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