Vinh Son - Song Hinh Hydropower JSC (HoSE: VSH) is one of the enterprises owning hydroelectric power plants with the largest capacity listed on HoSE. VSH is trading at an attractive valuation and its core business has growth potential. Therefore, we initiate coverage of VSH with BUY rating and a target price of VND47,500 based on two valuation methods FCFF and PE. We believe the revenue of VSH will skyrocket thanks to the significant growth in power output with the contribution of the new hydropower plant and the sustainable growth of demand for electricity in Vietnam. In the long term, the sustainable growth of Vietnam's electricity consumption demand is also an opportunity for VSH to develop expansion and upgrade projects.
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