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NT2 [BUY +22.3%] - Higher volume and lower gas price support recovery - Update

Company Research

23 Jan 2019

We maintain a BUY rating with an unchanged target price of VND31,500/share given a nominal change to our 2019 adjusted earnings forecast. We project 2019 adjusted earnings to recover by 15.6% YoY to VND855bn (USD37mn) as: 1) we expect sales volume growth of 4.2% and 2) we estimate a VND70/kWh increase in the spread on the competitive generation market/CGM (given a lower gas price of USD6.6/MMBTU, -5.9% YoY) outweighs the slightly negative impact of lower contracted volume (Qc).
Tags: NT2

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