We cut our target price (TP) for PPC by 12.6% to VND14,600/share and downgrade our rating from BUY to MARKET PERFORM.  

Our lower TP is due to a lower valuation for PPC’s standalone power generation business resulting from a 9% decrease in our aggregate 2023-2027F NPAT forecast, which is due to 58% lower volume on average for the Pha Lai 1 coal-fired power plant as well as a downward adjustment to 2023F revenue for previously incorrect revenue recognitions. We also lower our 2023F NPAT and valuations for HND and QTP due to our lower contracted volume and higher coal price projections.