We cut our target price (TP) for PPC by 11% to VND16,700/share but upgrade our rating from MARKET PERFORM to BUY as PPC’s share price has slumped 50% in the past three months.

Our lower TP is due to a lower valuation for PPC’s standalone power generation business as well as its associates HND and QTP resulting from 100-bp increases in both our market risk premium and cost-of-debt assumptions. We also edge up our 2022-2026F by 1%, which is mainly driven by our higher price spread assumption given stronger-than-expected competitive generation market (CGM) prices.