On January 12, 2026, B.Grimm Power Public Company Limited (SET: BGRIM) announced that it has successfully acquired a 25% stake in a portfolio of hydropower assets from an affiliate of Brookfield NERH Aggregator LLC (Brookfield). This newly acquired stake represents a total installed capacity of 406 megawatts, equating to 102 MW on an equity basis. The investment came at a cost of $230 million, or approximately THB 7.2 billion.
The hydropower portfolio comprises 26 plants spread across Maine and New Hampshire in the United States. The electricity generated by these projects is sold into the New England Independent System Operator (ISO-NE) market, as well as to a range of corporate buyers through stable mechanisms and long-term contracts, providing revenue certainty.
Maybank Securities has expressed a slightly negative stance on the deal. According to its analysis, the incremental profit from this acquisition appears minimal relative to the sizable investment, while BGRIM’s net gearing has also increased significantly as a result. The entire transaction was funded through debt, pushing BGRIM’s net gearing ratio up to 2.0x from a previous 1.88x.
Utilizing a 20-year discounted cash flow (DCF) valuation with a terminal value and zero percent long-term growth, Maybank Securities estimates only a THB 91-157 million incremental net profit annually for the fiscal years 2026 to 2030. This addition translates to a mere 3.8%-4.8% upside to the company’s earnings forecasts.
The main factors behind the modest profit contribution are substantial interest expenses—management has guided an interest rate of approximately 4.4%—and a relatively high acquisition price stemming from the long-lived nature of the assets, resulting in an extended payback period. The implied annual return on the investment, based on incremental net profit versus acquisition value, is estimated to be only 1.3%-2.2%.
Nevertheless, the DCF assessment implies an upside of roughly 9% to Maybank’s target price for BGRIM. While the deal improves portfolio stability by diversifying geographic exposure and revenue streams, Maybank concludes that it does not meaningfully enhance shareholder returns in the medium term.
The brokerage firm maintains a “Buy” recommendation with a target price of THB 16.
