- GEG released Q1 2023 results with revenue declining 4% YoY to VND548bn and NPAT-MI plunging 55% YoY to VND64bn. We attribute the lower revenue to a potential YoY decline in wind power volume that outweighed a potential YoY increase in solar power volume. In addition, the plunge in NPAT was due to (1) 30% YoY higher financial expenses from rising interest rates and (2) 6% YoY higher COGS.

- Q1 2023 interest expenses completed 18% of our full-year forecast; however, we believe GEG’s interest expenses will be higher in future quarters after the Tan Phu Dong 1 wind power plant enters operation in H2 2023. Furthermore, we are investigating the increased COGS as GEG’s depreciation expenses declined 10% YoY.

- Q1 2023 NPAT-MI completed 26% of our full-year forecast. We foresee insignificant change to our 2023 earnings forecasts as we expect losses from Tan Phu Dong 1 to weigh on earnings in future quarters.

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