REE Flash Note- OUTPERFORM

REE announced Q3/2025 results with VND2,552 bn in revenue, +26% YoY, and  VND674 bn in NPATMI, +40% YoY. For 9M2025, NPATMI reached VND1,908 bn, +45% YoY, fulfilling 79% of the company’s plan and 80% of ACBS’s 2025 forecast. The solid results were driven by strong growth in both the M&E and Energy segments, supported by higher project workloads and improved hydropower generation amid favorable weather conditions. Thus, we maintain target price of VND71,300/share for REE, representing a total expected return of 11.2%, rating OUTPERFORM.

REE’s Q3/2025 revenue rose 26% YoY to VND2,552 bn, mainly from the M&E and Energy segments. M&E revenue reached VND970 bn, +38% YoY, driven by a larger contract backlog and higher execution volume. Energy segment revenue rose 25% YoY to VND1,264 bn, mainly from hydropower, benefiting from favorable weather and highwater inflows—particularly from VSH (Q3/2025 revenue: VND556 bn, +40% YoY). As a result, gross profit increased 36% YoY to VND932 bn, and the gross margin improved to 37% (from 34% YoY). The water segment also contributed  VND91 bn in NPATMI, +26% YoY, primarily thanks to VCW, which reported VND34 bn in NPAT (Q3/2024: -VND33 bn). VCW recordedthe official selling price for the additional water supply capacity from Q2/2025. Overall, NPATMI’s margin improved to 26% from 24% YoY, driving consolidated NPATMI to VND674 bn, +40% YoY.

For 9M2025, REE recorded VND7,133 bn in revenue, +18% YoY, VND2,735 bn in gross profit, +30% YoY, and VND1,908 bn in NPATMI, +45% YoY. NPATMI’s margin was improved to 26% from 22% of 9M/2024.

Quick Conclusion: REE delivered robust results after 9M/2025, achieving 79% of its plan and 80% of ACBS’s 2025 forecast. We expect continued strong performance in Q4/2025, mainly supported by the Energy segment, which should benefit from favorable hydrological conditions. Accordingly, we reiterate target price of VND71,300/share, rating OUTPERFORM