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REE [BUY +52.3%] - A top corporate governance firm trades near book value - Update

Company Research

25 May 2018

We reiterate a BUY rating for REE with 52.3% total return, including a dividend yield of 4.9%. We raise our 2018F earnings growth from 15.6% YoY to 20.8% YoY thanks to a provision write-back from QTP and higher forecasts for some hydropower plants (TBC, TMP, VSH) given a strong Q1, which offsets slightly lower projections of M&E and office leasing segments. Long-term earnings growth could surpass our current forecast thanks to a guided 2018 new investment budget of USD130mn, triple that o
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