VSH – Gas and coal price increases boost competitiveness

■ Higher gas and coal prices increased VSH’s competitive advantage in the local electricity generation market but its share price fell 2.5% over the past year.
■ VSH is currently permitted to sell 20% of its production on the competitive generation market (CGM) but we expect this to increase to 40% within two years.
■ We raise our rating from Hold to Add and lift our target price by 6%.