Macro/ Strategy

Since the beginning of the year, the green energy portfolio has declined by 7.62%, underperforming the VN-Index, which gained 0.96% (as of 6 August 2026), mainly due to HDG and TV2, which fell 31% and 22.9%, respectively.

In 2Q2026, the power sector received mixed news, as companies reported strong earnings growth while multiple violations emerged, negatively affecting share price performance. Specifically:

_ 1H2026 earnings update: Revenue and attributable net profit of the green energy portfolio increased by 46% and 47% YoY, respectively, with POW recording the strongest growth at +350% YoY. Except for GEG and HDG, which reported declines in profit due to one-off items and provisions, respectively, all other companies in the portfolio delivered impressive growth.

_ During the same period, violations related to the criminal case involving the National Power Transmission Corporation (EVNNPT), PC1 Group, and related entities, including Power Engineering Consulting JSC 1, 2, 3, and 4, emerged. The affected stocks hit their floor prices for 2–3 consecutive sessions and have yet to fully recover, with negative sentiment also spreading to other stocks in the sector. Despite these developments, many companies continue to record strong growth in their core businesses, supported by various expansion and investment plans.

Therefore, we removed PC1 and TV2 from the portfolio due to the unpredictable risks associated with the violations, despite their attributable net profit growing by +72% and +200% YoY, respectively, in 1H2026. In addition, we also removed HDG due to the continued delays and issues surrounding Hong Phong 4. In this update, we favor POW, as thermal power generation continues to receive priority in dispatch, while contracted output (Qc) remains at a high level.