NT2 Flash Note – NEUTRAL

Nhon Trach 2 Thermal Power JSC (NT2 VN)

NT2 released Q2/2025 results with VND2,081 bn in revenue, -4.8% YoY, while NPAT jumped by 165% YoY to VND326 bn in Q2/2025 and reached VND363 bn in 6M2025, completing 130% of NT2’s plan and 133% of ACBS’s 2025 forecast. This strong NPAT performance in Q2/2025 was primarily driven by a 20.6% YoY increase in Qc, which led to 25.9% YoY growth in the average electricity selling price (AESP) and effectively offsetting a 24.4% YoY slide in overall output. We reiterate a NEUTRAL rating for NT2, with a target price of VND19,700/share by the end of 2025, implying a total expected return of 0.6%.

NT2’s output reached 776 mil kWh, slumping by 24.4% YoY but net revenue experienced a modest contraction of 4.8% YoY in Q2/2025. This resilience in revenue was primarily attributable to 20.6% YoY growth in Qc, which led to a 25.9% YoY increase in the AESP to over VND2,600/kWh. Thanks to these factors, the company’s gross profit reached VND366 bn, +184% YoY, with gross margin widening from 5.9% to 17.6%. NPAT achieved VND326 bn, +165% YoY, with NPAT margin improving from 5.6% to 15.7%. Cumulative 6M2025, although the output reached about 1.4 bn kWh, -15.8% YoY, NT2’s net revenue jumped by 43.3% YoY to VND3,508 bn and NPAT reached VND363 bn, (compared to 6M2024: -VND36 bn), resulting in NPAT margin of 10.3%.

Quick conclusion: NT2’s performance in 6M2025 exceeded its plan by 30% and ACBS’s 2025 forecast by 33%. We recognize that these strong results stem from higher-than-expected Qc. Would this favorable trend persist through the latter half of the year, the 2025 outlook for NT2 could remain positive, providing support for the stock price. We will provide further updates in our subsequent reports.