REE Update – OUTPERFORM

In 2025, REE reported VND2,528 bn in NPATMI, +27% YoY. This result achieved 104% of the company’s plan and 105% of ACBS’s forecast. The strong performance in 2025 was driven by growth across all business segments, particularly in energy segment (supported by La Niña weather conditions and increased rainfall during 2025) and the water segment (which recognized additional revenue from expanded capacity), with respective growth rates of 40% and 30% YoY. For 2026, we forecast revenue +14% YoY and NPATMI +8% YoY, supported by expansion across most of the company’s business segments. We give a target price for REE at VND78,300/share, implying a total expected return of 19.6%, rating OUTPERFORM.

REE targets revenue +22% YoY to VND12,230 bn and NPATMI +11% YoY to VND2,815 bn. The company plans to focus on strong expansion in the M&E and real estate segments.

M&E: Amid a push for public infrastructure investment, particularly in the power sector, REE expects the M&E segment to achieve an CAGR of 30% in 2026 – 2030 period. For 2026, REE targets M&E’s revenue to VND4,672 bn +33% YoY, with new backlogs to VND6,000 bn, +58% YoY, and NPAT to VND227 bn, +38% YoY.

Real Estate: REE aims to fully divest the remaining inventory of the Bo Xuyen Thai Binh project and improve occupancy rates across its office portfolio, particularly E.Town 6. Accordingly, the company targets real estate’s revenue to VND1,861 bn, +39% YoY, and NPAT to VND693 bn, +35% YoY.

Dividend Policy: REE approved a 2025 dividend plan consisting of 10% cash and 15% stock dividends. For 2026, the company plans to maintain a minimum cash dividend payout ratio of 10%.

Forecast Revisions: Following the 2026 AGM, we revised our forecasts upward, increasing revenue by 3% and NPATMI by 5% compared to our previous estimates.