• Q1 2025: Revenue was VND2.1tn (USD85mn, +13% YoY, 20% our 2025F forecast) and NPAT-MI was VND611bn (USD24mn, +27% YoY, 24% of 2025F forecast).
  1. Revenue growth was driven by (1) 26% YoY power revenue growth (mainly from hydropower with La Nina in Q1, but transitioning to neutral weather effects from now on), and (2) 9% YoY higher office leasing & real estate revenue (due to the contribution from E-town 6 vs none in Q1 2024); these factors together outweigh (3) 18% YoY lower revenue from M&E.
  2. The YoY increase in NPAT-MI was mainly due to (1) a 74% YoY earnings surge from the power segment (driven by a 3.9x NPAT jump from Mien Trung Hydropower – CHP, and YoY higher earnings from VSH), these factors outweigh (2) 22% YoY lower NPAT from office leasing & real estate (due to potential losses from E-town 6 due to initial operation with a low occupancy rate).
• We see insignificant changes to our 2025F NPAT-MI forecast (VND2.5tn, USD99mn, +26% YoY) as potential higher-than-expected earnings from power are to offset lower-than-expected earnings from the M&E segment, pending a fuller review. We currently have a BUY rating for REE with a target price of VND80,800/share.

Power NPAT-MI was VND413bn (+74% YoY, 35% of our 2025F forecast) mainly due to strong hydropower earnings, especially 3.9x YoY higher NPAT from CHP and our expectation for higher earnings from VSH as 80-day sales volume in Q1 2025 arrived at 321mn kWh (+32% YoY). This poses slight upside to our 2025F NPAT forecast for the power segment.

Office leasing & real estate revenue and NPAT-MI only completed 14%/12% of our 2025F forecast as we expect no land sales from Thai Binh recorded in Q1. Excluding this land sales revenue of VND487bn, revenue and NPAT-MI fulfilled 24%/19% of our respective forecasts, in line with our expectations.

M&E’s revenue and NPAT tracked behind our forecasts, posing downside risk to our 2025 M&E forecasts.

REE’s Q1 2025 results 

Source: REE, Vietcap

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