INVESTMENT THESIS
REE is a diversified business focused on utilities. With a conservative investment approach, REE seeks investments that generate good returns with a relatively low level of risk.
Leading in the energy sector. REE is famous for being a corporation specializing in searching for and acquiring potential power companies. By the end of 2023, the corporation had become a giant in the energy sector when investing in a portfolio of power plants with a total capacity of 2,845 MW, accounting for about 3.3% of the total installed capacity of Vietnam's power system. Of which, hydropower accounts for nearly 48% of the installed capacity, wind power and solar power account for about 12%.
Business results are expected to recover. In 2024, REE plans revenue to reach 10,588 billion DT (+23.5%yoy) and parent company shareholders' profit after tax to reach 2,409 billion (+10.1%yoy). This result is contributed by :
•Power segment improves in H2 2024 as hydropower recovers
•Real estate sector grew strongly when Etown 6 building was put into operation for lease and The Light Square project phase 1 was handed over.
•Electromechanical segment escapes losses and grows by double digits thanks to winning bids for public investment projects
Renewable energy - a source of long-term growth. Identifying the trend of green and sustainable development, in recent years, REE has shifted direction, gradually investing systematically in the production and trading of renewable energy (RE) and gradually withdrawing from the thermal power sector. Recently, REE has continued to increase its investment portfolio in the hydropower sector. In the first quarter of 2024, REE successfully completed the M&A of 100% of shares of Tra Khuc 2 Hydropower Plant (30MW) and is expected to put Thac Ba 2 Hydropower Plant (19MW) into operation in 2025. In addition, Tra Vinh 1-3 Phase 2 and Tra Vinh V1-5 & V1-6 wind power projects with a total capacity of 128MW of REE are also included in the 8th power plan. At the 2024 Shareholders' Meeting, the company shared its plan to invest an additional 100MW in the energy group, mainly in RE.
Investor can see the full Report below:
