Kiatnakin Phatra Securities has a positive outlook on PTT Group, following the announcement of its monetization plan at the Thailand Focus event last week, outlining major initiatives designed to restructure and strengthen its business moving forward.
As a primary component, PTT will establish a power flagship that consolidates the power assets of PTTGC, Thai Oil (TOP), and IRPC into a newly created entity. TOP operates the TOP SPP gas-fired power plant, which began operations in 2016 with a total generation capacity of 354MW and a steam production capacity of 757 tons per hour. Additionally, TOP holds a 10% equity stake in GPSC, which has a total equity power capacity of 7,236MW. The TOP SPP unit reported net profit after tax (NPAT) of Bt1.65 billion in 2024 and Bt1.74 billion in 2023.
PTTGC contributes a power unit of approximately 350MW, with power and steam output used internally, and also maintains a 10% equity stake in GPSC. For IRPC, the key power asset involved in this plan is a 49% stake in IRPC Clean Power (IRPC-CP), which achieved NPAT of Bt597 million in 2024. The remaining 51% stake in IRPC-CP is held by GPSC. IRPC-CP operates a combined cycle gas plant with a capacity of 310MW and steam capacity of 306 tons per hour.
Separately, PTT will launch an infrastructure flagship to absorb logistics and infrastructure assets—including networks of pipelines, tank farms, and jetty—from PTTGC, TOP, and IRPC. The first phase of this infrastructure consolidation is scheduled to seek approval from PTT shareholders during the Extraordinary General Meeting (EGM) in the fourth quarter of 2025. PTT, acting as the acquirer, will finance this consolidation through debt, supported by its strong financial position that allows it access to low-cost funding.
In addition to these restructuring measures, PTT’s divestment of non-hydrocarbon assets—primarily in electric vehicle-related businesses—has made significant progress since the first quarter of 2025. PTT divested its 40% stake in Horizon Plus in the first quarter of 2025 and its 50% stake in Neo Mobility in 3Q25. The company plans to complete its exit from these businesses in the second half of 2025. Additional divestments of smaller assets are also expected to conclude in the fourth quarter of 2025.
PTT anticipates these asset monetization and divestment activities will generate approximately Bt30 billion in new proceeds in the second half of 2025, excluding intercompany transactions—with the majority expected to derive from other asset sales.
Kiatnakin noted that the restructuring plan is expected to serve as a catalyst for PTT’s share price, while the company’s deep valuation discount relative to its sum-of-the-parts (SoTP) value of Bt40 per share and its strong dividend yield continue to underpin a positive investment outlook.
