POW released Q2 2023 results with revenue of VND8.4tn (+13% YoY) and reported NPAT-MI of VND126bn (-70% YoY). We attribute the plunge in reported NPAT-MI to (1) a 50% YoY decline in gross profit due to higher feedstock and operating costs for gas-fired power plants that were running with diesel oil due to a gas shortage, as well as higher mixed-coal prices and labor costs, (2) a net loss of VND24bn from the Hua Na hydropower plant vs net profit of VND67bn in Q2 2022, and (3) POW not recording FX loss compensation in Q2 2023 vs VND308bn recorded in Q2 2022. We note that POW’s adjusted NPAT-MI declined 34% YoY in Q2 2023.

- POW’s H1 2023 revenue and reported NPAT-MI were VND15.8tn (+9% YoY) and VND660bn (-42% YoY), completing 50% and 34% of our full-year forecasts, respectively. We note that POW’s adjusted NPAT-MI was VND563bn (-26% YoY) in H1 2023, representing 33% of our full-year forecast.