REE released its H1 result, which was very poor on the surface. Revenue declined by 4% and reported NPAT dropped by 37%. This was mainly due to the huge loss from PPC. In addition, income from REE’s hydro power investments were also poor given El Nino. However, on a recurring basis, we estimate that NPAT is flat YoY as traditional businesses (Mechanical & Engineering, air conditioning, office leasing) performed very well.