Gulf Development Public Company Limited (SET: GULF) reported a stellar performance in the second quarter of 2025, posting a net profit of THB 63 billion and operational earnings of THB 7.1 billion—substantially beating analyst projections.
The results, the first since GULF’s high-profile merger with Intouch Holdings (SET: INTUCH), have positioned the company for sustained momentum, with expectations for continuous growth in the third quarter, according to analysts. The company is set to hold an analyst meeting on August 20 to provide further business insights.
Morgan Stanley maintained an ‘Overweight’ recommendation on GULF, raising its target price to THB 69 per share, highlighting the outperformance in the company’s U.S. power business, where average electricity selling prices exceeded the mid-cycle level by 30%, hitting $30 per megawatt-hour.
The profit margin in GULF’s industrial power and steam segment has also rebounded, now averaging THB 1.5 per kilowatt-hour. While power sales remained flat year-on-year, steam sales showed a marked recovery. Notably, the company’s core power business continues to align with analyst forecasts, buoyed by strong power purchase agreement revenues and contributions from new gas-fired plants.
GULF’s telecom unit also reported better-than-expected profit, driven by higher average revenue per user (ARPU) and increased subscriber numbers. Dividend income from Kasikornbank (SET: KBANK) contributed approximately THB 977 million to this quarter’s results. The company’s net debt was reduced by THB 2 billion from the previous quarter, while free cash flow in Q2 amounted to around THB 5.4 billion.
Looking ahead, Bualuang Securities (BLS) expects GULF’s core earnings to continue climbing in the third quarter on new generation capacity and additional profit share from ADVANC following its 40.44% acquisition, along with a new dividend inflow projected at THB 8.2 billion. The brokerage firm has revised its 2025 earnings forecast to THB 27.5 billion, representing a 24% year-on-year increase, and set a year-end price target at THB 76 per share.
GULF has consistently delivered robust core earnings growth for over a decade, with expansion plans in AI-powered data centers and digital infrastructure, such as digital asset exchange platforms, expected in the future. The company’s sizable financial leverage is expected to facilitate further acquisitions and investments in both the energy and digital sectors, bolstering its long-term earnings trajectory.
JPMorgan also rated GULF ‘Overweight,’ giving a target price of THB 64 per share after second-quarter net profit hit THB 63.9 billion, mainly due to a THB 56.1 billion one-off gain from the INTUCH merger.
According to the LSEG Consensus, GULF’s total revenue for 2025 is projected at THB 135.3 billion, with net profit estimated at THB 25.6 billion. Out of 12 brokerage firms, the average target price is THB 61.29 per share, with an overall consensus to ‘Buy,’ citing the company’s compelling outlook and growth momentum.
