POW Update – BUY

• Q2/2026: Revenue reached VND20,308 bn, +116% YoY, while NPAT totaled VND3,708 bn, +387% YoY, significantly exceeding our forecast.
• 6M2026: NPAT reached VND5,008 bn, +306% YoY, equivalent to 446% of the company’s target and 166% of ACBS’s forecast for 2026. The strong earnings significantly outperformed our expectations, driven by a sharp increase in dispatched output, primarily supported by a substantial increase in Qc. In addition, the company recognized a VND1,600 bn foreign exchange gain from the revaluation loans related to VA1, together with VND381 bn in operation and maintenance (O&M) service for CM1&2 from EVN.
• Core 6M2026 NPAT reached VND3,027 bn, equivalent to 100% of our 2026 forecast. Following our reassessment of the company’s 2026 outlook, we raise the projected output to more than 22 bn kWh, primarily reflecting higher expected generation from the gas-fired power plants based on the latest Qc allocation. We forecast 2026 revenue of VND54,739 bn, +11% from previous forecast, and NPAT of VND7,123 bn, +135% from previous estimate. Core 2026 NPAT is projected at VND5,142 bn, +71% YoY. Accordingly, we raise 2026 target price for POW from VND17,100/share to VND18,400/share, +8% from previous target price, implying a total expected return of 33.3%, rating BUY.

Q2/2026: Strong growth in dispatched electricity output (+51% YoY).

• Output +51% YoY to 7.4 bn kWh, mainly driven by thermal power plants. Specifically, output reached 1.2 bn kWh at NT2 (+54% YoY), 2.3 bn kWh at VA1 (+20% YoY), and 1.7 bn kWh at NT3&4, 16-fold increase YoY. As a result, revenue surged to VND20,308 bn, +116% YoY.
• Gross profit reached VND4,721 bn, +304% YoY, benefiting from +30% YoY in the average Full Market Price (FMP) and a substantial increase in Qc during the peak summer demand season and ahead of the anticipated El Niño cycle.
• NPAT rose sharply to VND3,708 bn, +387% YoY, supported by the recognition of a VND1,600 bn foreign exchange gain from VA1 and VND381 bn in O&M service for CM1&2 from EVN.

Cumulative 6M2026: Revenue reached VND32,635 bn, +86% YoY, while NPAT +306% YoY to VND5,008 bn.