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PPC - NON-RATED - Company Visit Note

Power Purchase Agreement with EVN is positive, brings earnings visibility; prices were negotiated annually over last 4 years. Pha Lai 2 depreciation extension to 20 yrs (from 10 yrs) not yet approved. 2014 prelim results indicate 10% increase in revenue and 55% drop in PBT. Competive Generation Market not favourable for coal fuel plants like PPC. Non Rated: PPC trading at P/E of 11.2x FY14 EPS of VND2,400 (based on management’s prelim results) and dividend yield of 3.7% (estimate).