REE – Fundamentals look sound with catalysts in place
- In 9M/2023, REE's net revenue and PAT reached VND 6,505 bn (+3.2% YoY) and VND 1,684 bn (-14.6% YoY), respectively, owing mostly to the hydroelectricity's reduced contribution. Power output and FMP prices both fell in Q3/2023, causing the energy segment's contribution to NPAT-MI to fall considerably (-48.3% YoY). However, we expect that the results of the energy segment will improve in Q4/2023. We forecast REE's net revenue and NPAT-MI would be VND 8,827 bn (-5.8% YoY) and VND 2,437 bn (-9.5% YoY) in 2023, equivalent to EPS of 5,967 VND/share.
- For FY2024, we estimate that REE's net sales and NPAT-MI will be VND 9,324 bn (+5.6% YoY) and VND 2,810 bn (+15.3% YoY), respectively, equating to EPS of 6,878 VND/share. The main growth drivers in 2024 business results are (1) the E.town 6 project, which is expected to contribute an additional 26% to the existing rental floor area when completed in mid-January 2024, and (2) the Light Square commercial project with a low-rise segment (phase 1), which is expected to complete construction at the end of 2023 and hand over in 2024.
- We maintain a BUY rating with a target price of VND 74,000/share based on a sum of the parts (SoTP) valuation. With an expected cash dividend of VND 1,000/share in the next 12 months, total return is determined at 30% based on the closing price on Nov 10th , 2023.
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.