Refrigeration Electrical Engineering Corporation (HoSE: REE) is the leading enterprise in the utility sector listed on the stock exchange. REE can maintain a stable return on equity with an effective business model & suitable orientation. Based on FCFF and SoTP, we update the HOLD recommendation for REE with the target price at VND 77,400. In 2023, REE has 3 catalysts (1) The real estate segment is robust by the Etown 6 project & real estate project in Bo Xuyen, Thai Binh; (2) The M&E segment is expected to come back with key projects; (3) Plan to increase 100 MW of power segment capacity. However, we believed that the power segment will not record a significant growth rate like in 2022 due to the favorable weather will be over.
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