Mr. Sirimet Leepagorn, President and Acting Chief Operating Officer of Global Power Synergy Public Company Limited (SET: GPSC), stated that the company continues to see opportunities for investment expansion in India.
Currently, the company is investing through Global Renewable Synergy Company Limited (GRSC), holding a 39.90% stake in Avaada Energy Private Limited (AEPL), which operates renewable energy businesses in multiple states across India. AEPL’s current committed capacity totals 20,558 megawatts, with more than 6,000 megawatts already commercialized, and the remaining capacity will gradually reach commercial operation of date (COD) within 24 months.
The Indian government maintains a clear policy to promote renewable energy, targeting an annual increase of 45,000 megawatts in renewable power generation. By 2030, India aims to raise its renewable power capacity to 500 gigawatts or 500,000 megawatts. This is seen as an ongoing investment opportunity. Presently, AEPL operates the world’s largest solar farm in India, with a production capacity of 1,200 megawatts over an area of approximately 10,000 rai.
Avaada is ranked among the top five renewable energy companies in India. For investment expansion, the company employs a strategic approach, considering states with strong credit ratings. Additionally, GPSC is studying potential investments in the data center sector in India, mainly to supply clean electricity to data centers. Should the business prove attractive, joint ventures may be considered. Negotiations with local partners are ongoing to explore opportunities and feasibility, so no conclusions have been reached.
Regarding the launch of Direct PPA in Thailand, with a pilot project of 2,000 megawatts, it is observed that data center investors are keenly waiting. This presents an opportunity for the power business sector to grow. GPSC is also interested in participating. Currently, several data center groups have begun discussions with GPSC, representing over 1,000 megawatts, which will utilize GPSC’s existing power plants to supply electricity to data center clients.
Krungsri Securities anticipates that on November 5, GPSC will report a 3Q25 net profit of THB 1.55 billion, up 102% year-on-year but down 23% from the previous quarter.
However, if special items are excluded, such as THB 750 million profit from selling a 3.03% stake in AEPL, a THB 400 million foreign exchange loss (FX loss) from the parent company and share of profit from associates, as well as a THB 150 million one-time expense from adjusting the depreciation period of the CFXD project, the normalized profit would stand at approximately THB 1.35 billion, up 32% year-on-year and 26% quarter-on-quarter.
This growth is attributed to the improved gross margin of Small Power Producer (SPP) power plants, in line with the lower natural gas price at around THB 310 per MMBTU, along with decreased interest expenses following partial loan repayments.
For 4Q25, normalized profit is expected to rise year-on-year due to sustained high gross margin, though it may decline slightly from 3Q25 due to a better profit share from CFXD in the high season offsetting seasonal drops in electricity and steam sales.
Therefore, Krungsri Securities maintains a “Trading Buy” recommendation for GPSC with a target price of THB 46 per share, based on the Sum of the Parts (SOTP) valuation method, viewing GPSC as one of the beneficiaries from easing pressure on the SPP power plant segment under the new cabinet’s more relaxed energy policy direction.
Analysts from Phillip Securities (Thailand) stated that over the past week, the U.S. 10 – year government bond yield fell below 4%, the lowest in six months, due to concerns about the U.S. – China trade war and the broader U.S. credit market, which is seen as a supportive factor for power stocks regarding interest costs and valuation, as well as energy policy or “Quick Big Win” initiatives. Key drivers for the power sector include policies promoting pilot Direct PPA for 2,000 megawatts.
This supports the readiness of the data center industry infrastructure for enhanced clean energy use. GPSC has already conducted studies on data center investments both in Thailand and abroad, with a short-term positive sentiment and long-term growth opportunity. In 2025, profit is forecast at THB 5.4 billion, up 34% quarter-on-quarter.
However, for 3Q25, performance is likely to record FX gain from the earlier appreciation of the baht and recognize special profit from partial share sales in AVAADA (India) and TSR (Thailand) of approximately THB 850 million after tax, or about THB 0.30 per share.
Furthermore, the company benefits from the high season of the hydropower project in Laos. Overall, a “BUY” recommendation is maintained or to gradually accumulate during price weakness, with a base target of THB 46 per share.
