GEG Flash News – BUY

GIA LAI ELECTRICITY JSC (HoSE: GEG)

On Apr 29th, 2025, GEG held the Annual General Meeting (AGM), main points below:

1/ Post-Adjusted Power Plan VIII (PP8) Outlook: Following the approval of the adjusted PP8 in Apr 2025, a more rapid increase in national electricity output and total installed power generation capacity is anticipated. Thus, energy companies such as GEG are expected to benefit significantly. Specifically, several of GEG’s projects, including the Duc Hue 2 Solar PV project (50 MW) and the VPL2 Wind Power project (30 MW), along with other key initiatives, are slated for recommencement. Management indicates that GEG’s project pipeline totals 1 GW, although these projects may be subject to re-tendering processes.

2/ The output target for 2025 is 1,376 mil kWh, +2.2% YoY, revenue target is VND3,399 bn (+43.5% YoY), and NPAT target for 2025 is VND687 bn (+646.7% YoY). This NPAT projection incorporates the new electricity tariff for the Tan Phu Dong 1 project (VND 1,813/kWh) and includes a retrospective revenue recognition of VND397 bn for the period from Jun 2023 to Dec 2024, representing the price differential).

3/ Partial Buyback of Preference Shares: GEG intends to repurchase 7.7 mil preference shares, representing 12.0% of the total outstanding preference shares, at a maximum price not exceeding VND10,936/share. The maximum total expenditure for this buyback is VND84.3 bn, with the timeframe set for Q4/2025 or Q1/2026. Successful completion of this buyback would reduce the total outstanding shares (including common and preference shares) from 422.5 mil to 414.8 mil).