Gulf Development Public Company Limited (SET: GULF) gained attention after the company reported solid core earnings for the second quarter of 2025, driven by a standout performance from its U.S. power business and positive surprises in industrial steam sales, according to assessments by Morgan Stanley and JPMorgan.
Morgan Stanley noted an ‘Overweight’ rating on GULF, with a target price of THB 69 per share, highlighting that GULF’s core profit for the period was in line with expectations, with a significant boost coming from the U.S. power segment. ASPs in the United States soared to $30 per megawatt-hour, about 30% above the mid-cycle level—a key factor behind the earnings surprise.
The brokerage firm also stated that margins in the industrial power and steam segment are recovering, now reaching the mid-cycle level of around THB 1.5 per kilowatt-hour. While power sales volumes were steady year-on-year, steam sales indicated a marked recovery. GULF benefited from the contribution of newly commissioned gas-fired power plants, which helped the company’s core power business meet analyst forecasts.
On the telecom front, GULF outperformed expectations, supported by higher average revenue per user and a greater number of subscribers. Additionally, the company booked a dividend of THB 977 million from Kasikornbank Public Company Limited (SET: KBANK). Net debt declined by THB 2 billion compared to the previous quarter, while free cash flow for the period stood at about THB 5.4 billion.
JPMorgan mirrored the bullish sentiment, giving an ‘Overweight’ rating on GULF, though with a slightly lower price target of THB 64 per share. The investment bank noted that GULF reported headline earnings of THB 63.9 billion in 2Q25, bolstered by approximately THB 56.1 billion in one-time gains from the merger of GULFI and INTUCH. Stripping out these exceptional items as well as foreign exchange and derivative impacts, core earnings reached about THB 7.1 billion—a 9% increase from the previous quarter.
JPMorgan attributed the core earnings growth to rising electricity sales, higher profit shares from key associates and joint ventures including ADVANC, GJP and Jackson, as well as the aforementioned KBANK dividend. For the first half of 2025, the company’s core earnings accounted for around 48–54% of the full-year estimates set by JPMorgan and the market consensus.
