PV Power (HOSE: POW) | 2Q26 Update, BUY – Upside +44.2%

Core Earnings Strength Amplified by Legacy Gains

POW 2Q26 Performance

POW delivered strong 2Q26 results, with revenue rising to VND 20,308bn (+115.7% YoY, +64.7% QoQ) and NPAT-MI reaching VND 3,519bn (+512.2% YoY, +193.3% QoQ). For 1H26, revenue and NPAT-MI reached VND 32,635bn (+86.0% YoY) and VND 4,718bn (+350.4% YoY), respectively.

Headline earnings were amplified by approximately VND 2,476bn of legacy gains, including retrospective foreign-exchange differences at Vung Ang 1, final electricity and gas-price settlements at Ca Mau 1&2, and lower Ca Mau O&M provisions. Excluding these non-recurring items, core 1H26 NPAT-MI reached VND 2,240bn (+114.0% YoY), completing 72.5% of our FY26E core forecast.

Core operations also strengthened, with total electricity output increasing 42% YoY to 13.03bn kWh and the blended implied ASP rising ~23% YoY. Prolonged heatwaves supported stronger thermal-power dispatch, particularly at Vung Ang 1 and NT2, while NT3&4 contributed 2.60bn kWh and VND 9,317bn of provisional electricity revenue during their first meaningful commercial period. Operational momentum remained intact in 1H26. The addition of seven vessels expanded PVT’s fleet capacity and revenue-generating base, while stronger time-charter rates supported improved vessel economics. Other income also increased 304.8% YoY to VND 85bn, contributing to stronger earnings, although the main driver remained the core transportation business. The 1H26 gross margin improved to 15.9% from 15.3% in 1H25, while the net margin expanded to 10.8% from 9.0%.

Earnings Forecast

We raise our FY26E revenue and NPAT-MI forecasts to VND 50,651bn (+47.6% YoY) and VND 5,565bn (+129.3% YoY), respectively. Excluding the legacy gains, we forecast core FY26E NPAT-MI of VND 3,090bn (+27.3% YoY).

For FY27E, we forecast revenue of VND 54,698bn (+8.0% YoY) and NPAT-MI of VND 3,557bn (-36.1% YoY; +15.1% versus FY26E core earnings). Our revised forecasts incorporate a slower NT3&4 ramp-up, a higher blended ASP, full-year depreciation for NT3&4 and elevated project interest costs.

Target Price and Rating

We raised our target price from VND 15,450/share to VND 19,250/share. Based on POW’s closing price of VND 13,350/share on 18 August 2026, our revised target price implies a potential upside of 44.2%. POW currently trades at 7.4x FY26E P/E, below the selected-peer benchmark of 10.2x. While FY26 reported earnings are boosted by legacy gains, our valuation focuses on normalized earnings and the structural contribution from NT3&4. We therefore reiterate our BUY recommendation.