Analyst Pin-board REE – Better than expected earnings in 1Q2022
- In 1Q2022, revenue reached VND 2,045 bn (or USD 89 mn), +73% YoY and +8% QoQ. NPATMI experienced a bounce of 67% YoY to VND 693 bn (or USD 30 mn), +67% YoY and -12% QoQ thanks to a doubling of the power segment in earnings term.
- Earnings from hydropower doubled compared to 2021. Outperformance from this group was due to favorable hydrological conditions and high selling prices in CGM. Wind power group grew by 62% YoY to VND 34 bn.
- REE entered a growth phase since 2021, hence its P/E has been gradually rerated. We expect REE to sustainably grow in the medium term. In 2022, we forecast revenue and NPATMI to be VND 8,790 bn (or USD 382 mn, +51% YoY) and VND 2,310 (or USD 100 bn, +25% YoY), mostly driven by power segment. In 2023, Etown6 and those renewable energy projects accumulating in 2022 will play as growth momentum.
- Our latest target price is VND 73,500. We recommend to ACCUMULATE this stock due to the bright medium-term outlook. We will update our new target price in our next report.
Refrigeration Electrical Engineering is mechanical and electrical engineering services (M&E), manufacturing, assembling and sales of air-conditioner systems, real estate development and management, and strategic financial investments in infrastructure related sectors. Co.'s mechanical and electrical engineering (M&E) is a contractor for civil, commercial, industrial and infrastructure projects.
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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