Yuanta Securities (Thailand) has expressed a positive view on Ratch Group Public Company Limited (SET: RATCH), citing several new investment opportunities that are likely to become clearer by late 2026. Key factors include the potential extension of the power purchase agreement for its Ratchaburi power plant (RG) and opportunities to supply electricity to the data center segment.
Currently, Ratchaburi power plant units 1-2, with a combined capacity of approximately 1,470 MW, saw their PPA expire in October 2025, while three remaining units with a total capacity of around 2,175 MW will reach their contract expiration in November 2027.
Yuanta believes that these power plants still have the opportunity to secure new PPAs to meet demand for conventional generation under the country’s updated Power Development Plan, which is expected to provide greater clarity towards the end of this year.
In case PPAs are not renewed, RATCH has the alternative of supplying capacity to the data center sector and is currently in negotiations with approximately 5-6 clients. Each data center client is expected to require at least 300 MW of electricity, and the existing infrastructure at the Ratchaburi plant can support up to 1,400 MW for data center needs, offering a potential new source of long-term revenue.
Additionally, the draft PDP 2026 is viewed as a positive factor for RATCH. The plan, covering 2027-2037, aims to increase total power generation capacity by about 50 GW, including around 24.3 GW from solar, nearly 14.5 GW from wind, 2.7 GW from gas plants, and 9.1 GW from hydropower. The plan also proposes the first small modular nuclear reactor with a capacity of about 300 MW.
The brokerage believes RATCH has opportunities to participate in new investments aligned with the updated PDP, encompassing gas-fired power plants, renewables, and new forms of energy in the long term.
For 3Q26, Yuanta expects RATCH to post a normalized profit of approximately THB 1.4–1.6 billion, an increase from the previous quarter, following the improved performance of the RG and HKP power plants and the absence of major maintenance shutdowns. SG&A expenses are also expected to decline seasonally. However, profits are expected to be lower year-on-year, partly due to the expiration of the PPA for RG units 1-2 since October 2025.
The brokerage has upgraded its recommendation on RATCH from ‘Trading’ to ‘Buy’, with a target price of THB 46.25 per share, up from THB 32.00, reflecting the potential from PPA extensions or data center contracts as well as opportunities stemming from the new PDP and international energy investments. Notably, the target represents an upside of approximately 25.9% from the closing price of THB 36.75 on October 1, 2026.
