PV Power (HOSE: POW) | Q2 2025 Update, BUY– 1Y Upside +16.2%

POW sustained solid operating efficiency through H1 2025 thanks to (i) robust power demand from industrial customers, (ii) the ramp-up electricity output in Nhon Trach power cluster as EVN increase allocated Qc (iii) a smooth commissioning process for Nhon Trach 3 & 4 which is set to expand the company’s LNG-fired generation portfolio. The government’s ongoing energy transition policies, particularly those accelerating LNG infrastructure and supporting capacity payments for flexible power sources, have continued to underpin sector growth and improve POW’s long-term project economics.

Looking into H2 2025, POW’s outlook is supported by several positive drivers. The Nhon Trach power cluster is set to benefit from high contracted capacity (Qc) assigned by EVN, helping to improve profit margins, while Ca Mau 1 & 2 continue to deliver strong results from high base. The transition to a La Nina-influenced weather phase towards late 2025 is likely to boost hydropower output, and Nhon Trach 3 and 4 are expected to commence operations on schedule, open new LNG-fired portfolio.

We maintain our 12-month Target price for POW at VND 16,850/share. Since we initiated a BUY on POW on January 17, 2025, POW share price has increased 23.4% from VND 11,750/share to VND 14,500/share on August 5, 2025. We maintain  a BUY rating on POW with a potential upside of +16.2% from closing price of VND 14,500/share on August 5, 2025.