PPC – Eyes on the dividend income and S6 generator reoperation
- PPC reported its 1H23 electricity sales volume of 1,357 mn kWh (-7.7% YoY), while net revenue was VND 2,708 bn (+14,4% YoY), owing to the high ASP (as thermal coal prices remained high). NPAT came at VND 201 bn (+29.7% YoY), climbed significantly mainly due to (1) a dividend income of VND 99.8 bn from associate companies in 2Q23 while 2Q22 was not recorded, and (2) a change in accounting method for major repair costs, which resulted in large repair costs of fixed assets in Q2 recorded at VND 5.1 bn (-94% YoY).
- 2H2023 earnings are mainly due to dividend income from associate companies. We believe that the dividend income in 2H will support PPC's business results when the company reports deducted revenue of VND 161 bn in Q3/2023 (due to a measurement error from December 2018 to March 2022). We also expect the S6 generator to operate again in September 2023 will help PPC increase power output. For FY23, we forecast PPC's net revenue and NPAT to be VND 6,089 bn (+15.4% YoY) and VND309 bn (-37.8% YoY), respectively.
- We maintain an ACCUMULATE rating with a one-year target price of VND 15,500/share. With an expected cash dividend of VND 800/share in the next 12 months, the total return is determined at 12% based on the closing price on Aug 31th 2023.
Pha Lai Thermal Power Joint Stock Company is a Vietnam-based electricity company. It is engaged in the operation, maintenance and management of the thermal power plant in Hai Duong Province for electricity generation and distribution. The Company also constructs power plants and transmission lines. In addition, it is involved in the trading of equipment and machinery used in the electricity sector, as well as the provision of repair and maintenance services. Other activities include the manufacture and trading of gypsum, clinker and concrete additives. The Company announces that Vietnam Electricity Group (EVN) has completed its divestment of 51% stake in the Company to Power Generation Corporation 2 (EVNGenco2) on November 7, 2013.
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.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.