On Friday, the share price of B.Grimm Power Public Company Limited (SET: BGRIM) at the time of 2:02 p.m. was at THB 19.30, a THB 0.40 or 2.12% increase, with a total trading value of THB 418.66 million.
Krungsri Securities held a positive view on BGRIM following the company’s revision of its power generation capacity target for data centers to 500 megawatts by 2030, up from an initial target of 300 MW in Thailand, alongside plans to expand investment further into Japan and South Korea.
Krungsri estimates that BGRIM currently has data center projects totaling approximately 300 MW, fulfilling its original target. However, the brokerage maintains a cautious stance on the additional 200 MW target, as the company has several large-scale projects in its pipeline during 2027 – 2030 that have not yet been factored into earnings forecasts.
Key pipeline projects include the 184 MW Nakwol 2 wind power project, a 735 MW Independent Power Producer plant in Malaysia, and a 411 MW Battery Energy Storage System (BESS) project in Italy. Developing multiple projects simultaneously would require a high level of capital investment.
Krungsri noted that BGRIM’s interest-bearing debt-to-equity ratio currently stands at approximately 2.2 times, compared to its debt covenant ceiling of 3.0 times, providing remaining financial headroom. Nevertheless, pursuing several large-scale investments at once could pose capital structure challenges, which is why the additional data center target has not yet been included in estimates.
However, should BGRIM successfully execute the projects as planned while maintaining a roughly 40% equity stake alongside international partners, Krungsri estimates the company may require an additional capital injection of approximately THB 800 million to 1.2 billion. Meanwhile, BGRIM’s data center venture with Digital Edge is expected to yield an internal rate of return of around 12%, with an average electricity tariff of approximately 10 – 15 cents per kilowatt-hour.
Regarding performance trends for the third quarter of 2026, Krungsri projects that normalized profit could soften due to an increase in average pool gas costs to around THB 380 per MMBtu. However, this impact is expected to be partially mitigated by profit contributions from the phased commercial operation date of the Nakwol 1 wind farm and gas-link contract adjustments, which help cushion higher gas costs.
Over the medium term, Krungsri expects BGRIM’s normalized profit in 2027–2028 to rebound strongly with year-on-year growth of approximately 22% and 17%, respectively. Growth will be supported by an anticipated decline in gas costs driven by an LNG oversupply market, as well as the progressive COD of new projects, particularly the Nakwol 1 wind power plant in South Korea and data center developments in Thailand.
Consequently, Krungsri maintains a “Buy” rating on BGRIM with a 2027 target price of THB 23, viewing data center expansion and the entry into a new investment cycle as key drivers supporting future earnings growth.
