Following an analyst meeting, CGS International Securities (Thailand) (CGSI) noted a positive view on the outlook of CK Power Public Company Limited (SET: CKP).
CKP’s earnings in the first half of 2025 is expected to be stronger compared to the same period last year, driven by robust water levels at its Nam Ngum 2 Power Company Limited (NN2) and Xayaburi Power Company Limited (XPCL) hydropower plants.
Additionally, easing financial costs—stemming from both debt repayments and declining interest rates—are also anticipated to give earnings a meaningful lift. The company’s management is downplaying the impact of scheduled maintenance, suggesting it should not materially affect upcoming profits.
Bangpa-in Cogeneration Limited (BIC) power plants are seeing improvements, propelled primarily by reduced financing burdens. Exposure to the auto sector remains limited, with automotive customers representing just 2% of the total industrial base.
CKP is preparing to tap the bond market twice in the coming months: issuing THB 5 billion of debt for NN2 in early June and THB 4 billion for XPCL in July. The company anticipates average funding costs for these bond sales will run at about 3.6%, slightly lower from current average cost of debt.
On the project development front, construction at the Luang Prabang Power Company Limited (LPCL) hydropower site is nearly halfway complete at 48%, with commercial operations still on track for a 2030 launch.
Operationally, CKP has taken steps to avoid any recurrence of the unplanned 17-day XPCL plant outage that occurred in the third quarter of 2024.
Following these developments, CKP remains a strong pick, with 10 out of 11 analysts recommending a ‘Buy’ rating while one suggesting a ‘Sell’. The average target price stands at THB 3.80 per share.
At 4:41 PM (Bangkok time) on Tuesday, the share price of CK Power Public Company Limited (SET: CKP) grew by 0.70% or THB 0.02 to THB 2.86, with a trading value of THB 10.52 million.
