On Thursday at 3:10 PM (Bangkok time), the share price of B.Grimm Power Public Company Limited (SET: BGRIM) soared by 9.31% or THB 1.90 to THB 22.30, with a trading value of THB 2.01 billion.
Global Power Synergy Public Company Limited (SET: GPSC) surged 6.57% or THB 3.25 to THB 52.75, with a trading value of THB 1.49 billion.
Gulf Development Public Company Limited (SET: GULF) gained 0.82% or THB 0.50 to THB 61.50, with a trading value of THB 3.53 billion.
Gunkul Engineering Public Company Limited (SET: GUNKUL) increased by 2.07% or THB 0.10 to THB 4.92, with a trading value of THB 438.87 million.
KGI Securities (Thailand) stated that the victory of the Democratic Party in the U.S. midterm elections on November 3, 2026, which enabled them to regain the majority in both the House of Representatives and the Senate, will result in a divided government starting January 2027. This is expected to impose greater limitations on President Donald Trump’s ability to advance fiscal spending measures, military budgets, and other key legislation.
KGI views the investment climate for Thai power plant stocks, especially SPP operators, as positive. The SPP group is expected to outperform due to three supporting factors: (1) declining LNG prices, as easing geopolitical risks may lead to lower prices, which in turn should increase the gross margin of GPSC, the company best positioned to benefit from this trend, as well as BGRIM. Both companies are particularly sensitive to natural gas prices; (2) decreasing yields on U.S. and Thai government bonds, which could help reduce financing costs and support the valuations of highly leveraged operators; and (3) appreciation of the Thai baht, which can help reduce the cost of imported fuel and the burden of foreign currency debt.
However, the benefits for the SPP group will still depend on the natural gas price adjustment cycle, Ft rate adjustments, and cost pass-through mechanisms. For the IPP group, including GULF, RATCH, and EGCO, the benefit from lower gas prices is limited due to their ability to pass through fuel costs to counterparties as specified in their contracts.
Additionally, BCPG may benefit from positive sentiment toward renewable energy, though stricter government regulations may delay investments in data centers. Importantly, the election results do not guarantee an end to U.S.-Iran tensions or lower energy prices—instead, ongoing negotiations between the two countries remain a key issue to monitor.
KGI maintains an ‘Overweight’ investment rating for the power plant sector, with the highest weight given to GPSC, which stands to benefit the most from positive industry factors, and BGRIM, regarded as the highest-risk, highest-reward stock, followed by GULF.
Re-rating catalysts include the forthcoming PDP2026, BOI-supported power demand (especially from data center operators), and the extension of power purchase agreements for plants nearing contract expiration.
