REE - Buying opportunities open as earnings bottom out
​
“The decline in PPC’s profitability made a dent in REE’s H1 NPAT. The fact that the JPY gained over 15% against the VND and PPC failed to conclude the electricity sales contract (PPA) for Pha Lai 1 (PL1) in the first half was the main reason for its disappointing results in 1H2016. However, we expect to see a significant improvement in PPC’s sales volume and profit margins in the second half, especially the fourth quarter now that the PPA for PL 1 has been renewed. Better yet, the thermal power company is under negotiations with EVN towards a compensation for its loss of revenue in H1. There is also a possibility that PPC will reverse part of the provision made in 2015 for the investment in Quang Ninh Thermal Power JSC if the investee company’s profitability continues to improve. Even without regard to such extraordinary gains, we see it unlikely PPC’s net profit to continue falling now that the JPY has found some balance and the company has had plans to upgrade its equipment.
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.