POW – Earning Review – [HOLD] – Gross margin encountered many challenges

POW’s 4Q24 revenue grew to VND8,493bn, up 32% yoy. Increasing revenue driven by total the output recorded 4,556mn kWh (+22% yoy). However, GP recorded VND540bn (-26% yoy). The main reasons come from: (1) the alpha Qc coefficient dropping from 80% to 70% in 2024, leading to lower profits in the CFD market; and (2) the inefficiency of NT1 and NT2. Besides, (3) the impact from G&A expenses surged 33% yoy to VND394bn; (4) Financial revenue plummeted 100% yoy to VND0.26bn. But (5) the benefit from VND413bn in other income from Vung Ang compensation. As a result, NPAT declined to VND234bn (-47% yoy).