PC1 – Update – 20180823

• PC1’s net profit surged in 1H18, as expected, on the back of revenue recognition from the My Dinh Plaza 2 project and production ramp-ups at its new hydropower plants as we had anticipated. The grid erection and installation segment missed our expectations, however, due to slow progress on big projects but should recover from late 2018 onwards thanks to a sizeable order backlog of VND 2,300bn.
• A key catalyst for the stock is the initiation of the third national 500kV transmission line project, expected to open bidding in late 2018.
• We maintain our Add call but revise our target price to VND31,300

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