Power sector – In-depth – [OVERWEIGHT] – The Way of Water

In 1H24, nationwide electricity consumption reached 153bn kWh, +13% yoy. In our view, the growth drivers likely came from (1) El-Niño’s prolonged intense heat and (2) the economy’s recovery. In 2H24F, according to the EVN, the estimated electricity output for 2H24F is 159 bn kWh, +11% yoy. Therefore, we recommend BUY for QTP (TP: VND23,400; +40%) in the short, mid, and long-term. Besides, we still recommend HOLD for POW (TP: VND15,100) and NT2 (TP: VND19,900). In addition, we appreciate REE’s performance in 2H24 as (1) the hydropower segment benefiting from the El Niño phase to the Neutral phase and (2) recordings from the Etown 6 office and the Bo Xuyen housing project will support NPAT growth in 2H24F.