POW's outlook from three capital raising plans

The EGM voted in favor of a plan to increase charter capital from VND 23,418 billion to VND 30,678 billion, with an additional VND 7,259 billion to be raised. Accordingly, POW plans to implement three methods to raise capital.

Plan 1: The company will offer a rights issue to existing shareholders, with a total of 281 million new shares at a ratio of 12% (shareholders owning 100 shares will be entitled to buy 12 new shares). The offering price is VND 10,000 per share, equivalent to VND 2,810 billion to be raised. The proceeds will be allocated to the Nhon Trach 3 and Nhon Trach 4 power plant projects.

Plan 2: POW will issue bonus shares to increase share capital from equity, at a ratio of 15% (shareholders owning 100 shares will receive 15 new shares), equivalent to over 351 million shares. The capital source is the Development Investment Fund as stated in the audited 2024 financial statements.

Plan 3: POW will issue shares for dividend payment at a ratio of 4% (shareholders owning 100 shares will receive 4 new shares). The source of issuance is retained earnings as stated in the audited 2024 financial statements.

The issuances are expected to be carried out from 2025 to Q1/2026, pending approval from the State Securities Commission. The proceeds from the rights issue—about VND 2,810 billion—will be used as equity financing for the Nhon Trach 3 and Nhon Trach 4 projects (covering payments under contracts signed with contractors/partners).

Experts expect POW’s capital raising plan to succeed, given shareholder approval, strong business results, potential from new projects, and the three-pronged structure of the plan. The company’s charter capital is set to increase from over VND 23,418 billion to more than VND 30,678 billion, providing resources for the Nhon Trach 3 & 4 power plants.

The three-pronged approach will help diversify funding sources and minimize risks. In addition, the resource injection and project pipeline will accelerate progress, enabling the Nhon Trach 3 & 4 plants to come online earlier, promising a strong growth driver for the company starting in 2026.

Business Performance

By the end of Q2/2025, POW recorded revenue of VND 9,399 billion and net profit attributable to shareholders of the parent company of VND 602 billion. The hydropower segment posted strong growth thanks to favorable rainfall, contributing significantly to total output, while thermal power showed mixed results. Gross margin improved markedly in a favorable electricity market environment, helping POW achieve its highest net profit since the start of the year.

According to KBSV, hydropower output has rebounded strongly thanks to heavy rainfall in Nghe An and Quang Ngai. In Nghe An, rainfall began to recover in March 2025, with total Q2 rainfall doubling year-on-year to 129 mm. In Quang Ngai, rainfall in Q2 reached 481 mm, slightly up year-on-year, showing limited impact from off-season rain patterns. With more rainfall in Nghe An, KBSV has slightly raised its 2025 forecast for POW’s hydropower revenue and output to VND 1,484 billion and 1,500 million kWh, respectively.

For 2026, KBSV forecasts output improvement in early months thanks to neutral weather patterns, offsetting lower rainy-season production later in the year, leading to only a modest 7% decline, at 1,393 million kWh. Average selling prices are expected to rise slightly year-on-year, with thermal power accounting for a higher share in the second half, bringing estimated 2026 revenue to VND 1,392 billion.

Gas-fired Power

A favorable operating environment and stable gas supply supported sustainable recovery at Nhon Trach 2. In the first seven months of 2025, Nhon Trach 2’s power generation reached 1,675 million kWh.

As of late September 2025, POW shares were trading near the bottom range of VND 14,000–15,000 per share, with daily liquidity of 20–30 million shares.

Given the above business outlook, KBSV recommends that investors continue to hold POW shares through the end of the year, in anticipation of the company’s largest-ever capital raising deal.