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PPC [O-PF 12%] - Low prices in competitive generation market offset profit increase from fully depreciated asset - AGM Note

Company Research

27 Apr 2016

We attended PPC’s AGM on April 26. Weak Q1 results and a 6% share price increase since our previous update lead us to change our rating for PPC from BUY to O-PF. We also reduce our target price by 16% to VND18,200. Investors were very pleased with 2015’s dividend and profitability. PPC declared a cash dividend of VND2,500 (67% higher than our expectation, 14% yield).

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